Fuel price cut in pipeline, says AA

LOCAL consumers could be in for a small boost as a slight decline in the fuel price is on the cards in May. Yesterday, the latest projection from the Central Energy Fund showed that the local fuel price could drop by 13c a litre on Wednesday, May 6. “The average rand/US dollar exchange rate has stabilised over the past month, reducing volatility in the fuel price,” the Automobile Association of South Africa (AA) said in a statement. “At the same time, international petroleum prices have retreated to a more moderate level, with reasonable stability evident over the past month,” the AA added. The AA said that the current data suggested a reduction in petrol prices of around 17c per litre, with diesel and illuminating paraffin both down by about 22c per litre. “It remains to be seen whether the recent fuel price volatility has truly subsided,” the AA commented. “The prevailing picture is that motorists will enjoy some relief at the pumps in May after the steep fuel price hikes of March and April,” it concluded. – Staff Reporter