More shocks at the pumps expected in May

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Motorists still reeling from April’s mammoth R1.24 increase in fuel are in for another shock in May with the Automobile Association (AA) anticipating yet another substantial hike come 8 May 2019.
Commenting on mid-month unaudited data released by the Central Energy Fund on 15 April 2019, the AA said that stronger international oil prices for the period under review points to a 56 cents a litre increase for petrol with diesel set to go down by five cents as a result of declining demand due to the end of winter in the Northern Hemisphere. Illuminating paraffin is also set to come down by five cents.
“The Rand has appreciated quite strongly against the US dollar since the end of March, 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 AA remarked.
“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. Price stability in illuminating paraffin is welcome as South Africa heads into its own winter, during which many households will be using paraffin as a heating fuel. But the rise in petrol is cause for concern when our economy is already in difficult waters.”
By mid-afternoon on Monday, the Rand was trading at R13.97 to the US Dollar with Brent Crude Oil at $71.55 a barrel. – Autodealer