Johannesburg - Although the official fuel prices for April are only set to be announced next week, unaudited data from the Central Energy Fund (CEF) is painting a positive picture for diesel and a neutral one for petrol.
According to the CEF data, diesel is looking set to come down by around 78 cents per litre, while illuminating paraffin is looking likely to fall by about R1.39.
No significant changes are forecast for the April petrol price however, as the month-end CEF figures show a potential decrease of 4 cents per litre for 93 Unleaded and 1.5 c/l for 95 ULP. However, once certain factors like potential adjustments to the Slate Levy are calculated into the price, consumers could in reality be looking at a small increase or a small decrease.
Yet the bottom line is that no major shocks are expected on the petrol front.
The Automobile Association says that lower international oil prices are the main driver behind the impending decreases, but the weaker rand is counter-balancing these gains. Were it not for our currency weakness, petrol and diesel prices could have decreased by an additional 40 cents per litre.
“The good news, though, is that if adjustments to Zone differential costs and the Slate Levy are made, petrol prices are not likely to increase significantly and diesel and illuminating paraffin prices are still set to come down,” the AA noted.
“The diesel decrease is particularly important because it is a major input cost in the manufacturing, mining, and agricultural sectors, and a decrease to this fuel could prevent immediate rising costs in goods and services.”
And while fuel taxes are normally raised in April, the government has thankfully elected not to increase the General Fuel Levy and Road Accident Fund levy this year.
Following the R1.27 petrol price increase that was implemented on March 1, 95 Unleaded petrol currently costs R22.30 at the coast and R22.95 in Gauteng, with 93 Unleaded retailing at R22.65.
The wholesale price of 50ppm diesel is currently listed at R21.08 at the coast and R21.71 inland.
The April petrol price and diesel price increases will be implemented from Wednesday 5 April, with the official announcement likely being made on Monday or Tuesday.