Petrol users will have to fork out an extra 12 cents a litre for May
A 42 cents-a-litre increase in the landed price of petrol has outstripped the exchange rate’s strength considerably, meaning that motorists will have to pay an extra 12 cents a litre for petrol in May.
According to the Automobile Association (AA), a steady appreciation in international petroleum prices during April has brushed aside gains in the Rand/US dollar exchange rate.
“The exchange rate showed a creditable strengthening during April,” the AA said. “With a flat oil price, consumers could have expected the price of fuel to drop by up to 29 cents a litre. But the recent increase in international product prices means that diesel will only drop by three to four cents a litre, with a nine cent drop on the cards for illuminating paraffin,” said the AA.
“International petroleum prices have settled into a pattern of gains which are not always being overcome by recent Rand strength against the dollar,” the AA commented.
“We forecast steady rises in the price of fuel in South Africa in the short to medium term, with the possibility of larger spikes if the Rand comes under pressure,” the Association concluded.
Source: The Automobile Association