Ricochet News

Petrol price April 2017: Levy increases to eat away expected fuel prices decreases

MARCH 15, 2017
Petrol price April 2017: Levy increases to eat away expected fuel prices decreases

While commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF), the Automobile Association (AA) on Wednesday said that although fuel prices are predicted to drop in April, that will not make much of a difference as drivers will have to deal with increases to the general fuel and Road Accident Fund (RAF) levies.

The fuel levy will increase by 30 cents per litre, while the Road Accident Fund levy will increase by 9 cents.

In March, the retail price of both 93 and 95 octane petrol decreased by 8c a litre, while the price of diesel also decreased by 2c a litre and the wholesale price of illuminating paraffin decreased by 8c a litre. LP gas cost 2c less  per kilogram.

On Wednesday, the association said that it predicts that petrol will decrease by 51 cents litre; diesel by 27 cents and illuminating paraffin by 32 cents. This is without taking into account the new levies.

Including the new levies, motorists will now only see a 12 cents a litre drop in petrol.

“Diesel users, on the other hand, will see an increase of 12 cents a litre, with the levies eating up any gains,” the AA said.

The AA added that international petroleum prices have continued to decline leading to the expected drops.

"OPEC’s reduction in its crude oil output targets has been countered by increasing global oil stocks held by non-OPEC nations.

"This has gradually pushed the oil price down to near the levels it was maintaining before OPEC’s output targets were adjusted, which is good news for South Africans.

“The rand has shed around four cents against the dollar since the start of March. If this period of relative stability in the exchange rate continues, the currency will only have a small influence on the fuel price at month end,” the AA described.