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Staff Writer

Mixed outlook for petrol and diesel prices in South Africa



Unaudited data from the Central Energy Fund (CEF) shows modest uptick in petrol prices for April.


Conversely, the data suggests a slight decline in diesel prices and illuminating paraffin, according to the Automobile Association (AA).


Despite the challenging start to the year for all fuel grades, the AA said that any respite for consumers is appreciated, particularly with the Easter holidays approaching.


The latest figures from the CEF indicate an expected increase of approximately 10c/litre for ULP95 and around 9c/litres for ULP93.


Conversely, the wholesale diesel price is projected to decrease between 34c/ litres and 38c/ litres, with illuminating paraffin set to drop by roughly 47c/ litres.


“The decrease in diesel and paraffin prices is certainly good news; diesel is a big input cost in major sectors such as agriculture, mining, manufacturing, and retailing, and an increase here often contributes to increased prices of basic commodities,” said the AA.


“If the Rand/US Dollar exchange rate, as well as the movement in international product prices, continues in its current downward trajectory, there is a likelihood that by the time the Department of Mineral Resources and Energy makes the official adjustment for next month, the under-recovery will be significantly less and result in a much-needed price decrease.”


Brent crude trades were expected to resume a bullish trend, testing $87.00 initially, with $88.40 viewed as a next main target.


The rand held its ground against the dollar ahead of interest rate results on Wednesday.


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