Some good, some bad news for fuel in April

Unaudited fuel data from the Central Energy Fund (CEF) is pointing to possible increases of around 25cents/litre to petrol prices in April. Commenting on the data, the Automobile Association (AA) says the good news, however, is that the data is showing a decrease to the wholesale price of diesel of around 20c/l, and a significant decrease to the price of illuminating paraffin of around 68c/l.

“The weaker Rand to US Dollar exchange rate is contributing to the increases in petrol and clawing back some of the decreases to diesel and illuminating paraffin, with lower international oil prices having the reverse impact. However, in the case of diesel and illuminating paraffin, the weaker Rand is not resulting in increases,” notes the Association.

It says, though, that the unaudited data must be seen with three considerations in mind.

“Firstly, this data is mid-month, so the numbers should change positively before the official adjustment is made by the Department of Mineral Resources and Energy at month end. The second factor is that the Rand appears to be steadying against the US Dollar, which should bring further relief in specifically the petrol prices,” says the AA.

Another consideration is that fuel levies will not be increasing in April and will stay at the same rate as they did in 2022.

“Fuel levies are traditionally increased in April, but the Minister of Finance heeded calls by the AA and in his February, Budget Speech indicated that this will not happen this year. Although not a saving as such, any increases would have added additional pressure to fuel prices, and we again welcome his decision not to increase these rates for 2023.

The official adjustment of the fuel prices comes into effect on 5 April, the first Wednesday of April.