JOHANNESBURG – The Automobile Association (AA) has promised its members that fuel prices are set to take a hike next month due to the forthcoming Carbon Tax that will be introduced on June 05.
According to the association, fuel data for this month reveal a listless fuel price picture as they attribute this to unaudited fuel price data announced by the Central Energy Fund.
“The overall picture is of little change. The rand has slipped marginally by thirteen cents against the US Dollar since the department of energy’s surprise early announcement of the May fuel price on Sunday, April 28,” said Automobile Association.
“The result is a mixed picture. For petrol, the rand’s weakness was mostly a counterpart of oil’s retreat, pointing to a seven cents-a-litre reduction at month end.
“Diesel fared worse, with a slight increase of 12 cents a litre on the cards, and illuminating paraffin showing a nine-cent rise,” said the association.
Although the petrol price has dropped by more than 60 cents a litre early May, the price regained its grounding after last week’s general elections, and AA has sent a reminder that the Carbon Tax introduction will see the petrol price going up by nine cents and 10 cents for diesel.
“Our hope is that the new government will immediately set out its policy agenda which has a direct impact on fuel prices,” concluded AA.
Moreover, with the Rand having shown good signs of stability during the elections, it remains to be seen if it will react positively when President Cyril Ramaphosa is inaugurated on May 25 and with his new cabinet set to be unveiled two days later.
According to analysts, South Africa’s currency may extend its strength to R13.20 per dollar by year-end provided Ramaphosa’s new cabinet inspires confidence among investors since the Rand reached R14.24 per dollar since the recent polls.