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April fuel forecast: The good and bad news
According to the Automobile Association (AA), unaudited fuel data from the Central Energy Fund (CEF) is pointing to possible increases of around 25c/litre in petrol prices in April.
Source: Unsplash
The AA noted, however, the good news: data is showing a decrease in the wholesale price of diesel of around 20c/l, and a significant decrease to the price of illuminating paraffin of around 68c/l.
The weaker rand to US dollar exchange rate is contributing to the increases in petrol and clawing back some of the decreases in diesel and illuminating paraffin, with lower international oil prices having the reverse effect.
This data is mid-month, so the numbers should change positively before the official adjustment is made by the Department of Mineral Resources and Energy at month's end.
The second factor is that the rand appears to be steadying against the US dollar, which should bring further relief specifically the petrol prices.
Another consideration is that fuel levies will not be increasing in April and will stay at the same rate as they did in 2022.
Fuel levies are traditionally increased in April, but the Minister of Finance heeded calls by the AA and in his February Budget Speech indicated that this will not happen this year.
The official adjustment of the fuel prices comes into effect on 5 April, the first Wednesday of April.
