Mixed bag for May fuel outlook

It is both good and bad news for motorists next month as the petrol price is set for yet another hike, while diesel should likely decrease.

The Automobile Association (AA) predicts a 37 cents per litre increase in the price of unleaded 93 petrol in May, pushing the price close to R25.15 per litre.

ALSO READ: More pain at the pumps as April petrol increase on the cards

The association, which was commenting on unaudited data from the Central Energy Fund (CEF), said unleaded 95 inland would likely increase by 38 cents per litre.

“This will push the price of this fuel to around R25.50 cents per litre, higher than the R25.42 seen in August 2022, but not quite the record price of R26.74 in July of the same year.”

There could, however, be good news for diesel users as it is set to decrease by 35 cents per litre, while illuminating paraffin is set to come down by 28 cents per litre.

“The decrease to diesel prices is especially welcome as it will not result in higher input costs across various sectors, and this won’t be a driving factor in consumer prices increasing,” the AA states.

ALSO READ: Petrol price: How to keep your vehicle safe from fuel thieves

They have expressed concern that South African fuel prices have reached record-high increases over the last three years despite the government not increasing the General Fuel Levy or Road Accident Fund (RAF) levy.

“The expected increases reaffirm [the AA’s] belief that a review of the fuel price structure is necessary to establish if any components within the current pricing model can be revised by the Department of Mineral Resources and Energy (DMRE) to mitigate against rising costs,” the AA says.

HAVE YOUR SAY