Fuel outlook mixed for April with consumers still under pressure

South Africans can expect a slight increase to petrol prices in April based on unaudited data from the Central Energy Fund (CEF). But, says the Automobile Association (AA), the data is also pointing to a marginal decrease to diesel prices and illuminating paraffin. The AA says while the year did not get off to a good note for all grades of fuel, any form of relief for consumers is welcome, especially going into the Easter holidays.

According to the latest data from the CEF, ULP95 is expected to climb by around 10c/litre, and ULP93 by around 9c/l. The wholesale price of diesel is expected to decrease by between 34c/l and 38c/l while the cost of illuminating paraffin is slated to come down by around 47c/l.

“The decrease in diesel and paraffin prices is certainly good news; diesel is a big input cost in major sectors such as agriculture, mining, manufacturing, and retailing, and an increase here often contributes to increased prices of basic commodities.

“If the Rand/US Dollar exchange rate, as well as the movement in international product prices, continues in its current downward trajectory, there is a likelihood that by the time the Department of Mineral Resources and Energy (DMRE) makes the official adjustment for next month, the under-recovery will be significantly less and result in a much-needed price decrease,” says the AA.

South African motorists are advised to budget efficiently for their trips this Easter holiday and to ensure that their vehicles are in a good condition. The AA is offering consumers who plan to drive to their holiday destinations over the Easter period, free holiday vehicle checks until 2 April and advises motorists to contact any of the participating dealers to book an appointment.