NATIONAL NEWS - The unaudited mid-month fuel price data released by the Central Energy Fund suggests that petrol may increase by 56 cents a litre at the end of April, while diesel is showing a reduction of five cents and illuminating paraffin is down by a cent.
"If this increase materialises, this will be the third straight increase to fuel prices this year,” said the Automobile Association (AA) in a statement.
This price hike is due to unexpectedly strong international fuel prices, which have raised the possibility of an unwelcome price hike for petrol users in South Africa.
The AA said: “The international product price of diesel climbed somewhat in the first half of April, while petrol has made a substantial jump. Diesel’s smaller increase is likely due to variations in international refining capacity, as well as the approaching end of the Northern Hemisphere winter when demand for diesel fuels for use in peaking power plants and as a heating fuel diminishes.”
Since the end of March, the Rand has appreciated quite strongly against the US dollar with the daily exchange rate used for fuel price calculations rising from over R14.60 to the dollar on 31 March to under R14 currently.
“The ground gained by the local currency has cushioned some of the blow, with diesel currently showing a slight decrease. But petrol users are in for a shock,” said the AA.
“The price stability in illuminating paraffin is welcome as South Africa heads into its own winter, during which many households will be using paraffin as heating fuel. But the rise in petrol is cause for concern when our economy is already in difficult waters,” the AA continued.
Here are the predicted petrol prices for May 2019:
