Truckers can expect a hefty diesel price increase in April of around 95 cents a litre due to on-going increases in international petroleum prices combined with a 30 cents-a-litre increase in the fuel levy. This is according to the Automobile Association (AA), commenting on unaudited month-end data released by the Central Energy Fund (CEF).
“Including the additional 30 cents a litre fuel levy, petrol is likely to see an increase of up to 83 cents a litre, with diesel up around 95 cents a litre,” says the AA. “Although the Rand/US dollar exchange rate has firmed in the Rand’s favour over the past few weeks, the strengthening of international petroleum product rises has outstripped the Rand’s gains.”
The Association says the fuel price is subject to considerable risk. “If oil prices continue to climb, South African motorists and truckers can expect substantial fuel price increases. Any associated deterioration in the exchange rate will add more pressure. A combination of sustained oil strength – and a ratings downgrade before year end – would be very negative,” says the AA.