April fuel price outlook: decent diesel decrease, small petrol cut likely
Johannesburg - Given the volatility of our currency and international oil prices in the past month, April’s fuel price is not an easy prediction, but the good news is that the equation has turned positive.
That’s particularly good news for those with diesel vehicles. According to the latest daily snapshot from the Central Energy Fund, diesel is looking set for a price reduction of around 60 cents a litre from early April. But due to a strong over-recovery, that figure is growing by the day and in the coming week it could rise to around 75 cents if current trends persist.
It’s less rosy on the petrol front, where we’re currently seeing an over-recovery of around one cent per litre, growing by around one cent per day, so if oil prices hold steady, a small decrease of 5 to 10 cents could be on the cards.
Of course, the official fuel prices will only be announced in early April, and other factors, such as the Slate Levy - which compensates fuel companies for oil price discrepancies during the preceding month - could also come into play, either in our favour or against.
And although it’s good news that the fuel price equation has turned positive, a minor petrol price cut will come as little relief for motorists, who had to absorb a R1.27 increase at the beginning of March. This pushed the price of 95 Unleaded petrol up to R22.30 at the coast, while 93 Unleaded now retails at R22.65 inland.
Although South African fuel taxes remain stubbornly high at R6.11 per litre, there is at least some consolation in the fact that levies are not being increased this year.
“Fuel levies are traditionally increased in April, but the Minister of Finance heeded calls by the AA and in his February, Budget Speech indicated that this will not happen this year,” the Automobile Association said.
“Although not a saving as such, any increases would have added additional pressure to fuel prices, and we again welcome his decision not to increase these rates for 2023.”