Price of petrol slightly up, diesel down in May
Stability on international petroleum markets and a stronger exchange rate have given fuel prices a breather. This is according to the Automobile Association, which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The current data shows the prospect of a welcome 32c a litre drop in the price of diesel, and 27c for illuminating paraffin.
“Petrol hasn't fared as well, with a slight increase of 6c a litre predicted,” the AA comments.
“However, the exchange rate's performance is coming very close to nudging petrol into a decline, and if the current trends continue, there may be across-the-board relief from the recent series of price hikes at month-end.”
The association says the rand has continued on the strengthening trend which emerged in mid-March, and has gained almost 50c against the US dollar since that time.
“Meanwhile, international petroleum prices have been stable over the same period, allowing the rand to leverage its recent strength.”
The AA reiterated its comments to the parliamentary portfolio committee on mineral resources and energy, in which it called for a review of both the fuel price structure and fuel taxes.
“Fuel is one of the most heavily-taxed commodities in SA. It is right and proper for the government to ensure that the pricing structure is still appropriate,” it concludes.