Oh oh! Fuel price increases on the cards

Fuel data for May is showing a listless fuel price picture. This is according to the unaudited mid-month fuel price data released by the Central Energy Fund.

The overall picture is of little change. The Rand has slipped marginally by 13 cents against the US dollar since the Department of Energy’s surprise early announcement of the May fuel price on Sunday, April 28. The international oil price has also ebbed and flowed, with the landed basic price of petrol dropping by over 60c per litre in the first days of May before regaining ground after the election.

The result is a mixed picture.

For petrol, the Rand’s weakness was mostly a counterpart of oil’s retreat, pointing to a 7c/litre reduction at month end. Diesel fared worse, with a slight increase of 12c/litre on the cards, and illuminating paraffin showing a 9c rise. However, we remind you that the forthcoming Carbon Tax is due for introduction on June 5, and will add an additional 9c/itre to the petrol price, and 10c to the diesel price.

Our hope is that the new government will immediately set out its policy agenda which has a direct impact on fuel prices.

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