Home Economy SA: Fuel prices to fall next month despite tax hike, experts

SA: Fuel prices to fall next month despite tax hike, experts

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Next month’s fuel prices are to show a significant reduction what looks more and more probable for April, and it’s likely to be more than a rand per litre, even with the looming fuel tax increases coming into play.

The Central Energy Fund said in a recent report that the average fuel price calculation for the month so far shows decreases of R1.11 a litre for petrol and R1.10 for diesel.

However, this average does not fully account for the most recent plunge in the price of international crude oil, which was trading at $32.70 a barrel at the time of writing.

It is noteworthy that the daily calculations revealed this week have all shown an ‘over-recovery’ of more than R1.60 a litre for petrol, with the most recent one being as high as R2.29. The facts are that if current trends persist, that aforementioned daily average of R1.11 a litre is certain to grow, possibly to R1.50 or more – consider that at the beginning of this week, the average stood at 78 cents.

However, regardless of what the actual decrease is, the 2020 fuel tax increase that comes into effect at the beginning of April will take 25 cents out of the equation.

Source: IOL Motoring

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