South African fuel prices have experienced record high increases over the past three years despite the government not increasing the General Fuel Levy or Road Accident Fund (RAF) levy.
According to the latest data from the Central Energy Fund (CEF), diesel is set to decrease by 35c/l while illuminating paraffin is set to come down by 28c/l.
The decrease in diesel prices is welcome as it will not result in higher input costs across various sectors, and this wont be a driving factor in increasing consumer prices, the Automobile Association (AA) said.
However, with tensions ramping up in the Middle East, the local currency could be under significant pressure going into the last two weeks of April, and it could significantly impact local fuel prices in May, the AA said. At this stage its important to keep an eye on that indicator as we head into the new month.
The association reiterated its call for a review of the fuel price structure to establish if any components within the current pricing model can be revised by the Department of Mineral Resources and Energy to mitigate rising costs.
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