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Gasoline prices are currently on track for a hike in early May, but diesel prices may be lowered slightly.
The price of 95 unleaded petrol is set to rise by 34 cents per liter in the first week of May, while the wholesale price of diesel will rise by 24 cents to 29 cents per liter, according to the latest estimates from the Central Energy Fund (CEF). It is expected that
“The reduction in diesel prices is particularly welcome as it does not lead to increases in input costs in a variety of sectors and does not become a factor in consumer price inflation,” the Automobile Association (AA) said in a statement.
Illumination paraffin can drop approximately 16 degrees. Oil is priced in dollars, so fuel prices in South Africa are primarily determined by international oil costs and the rand exchange rate. Oil soared last week amid military tensions between Israel and Iran.
Production cuts by the OPEC+ group also pushed up prices. Brent crude oil hit $92 a barrel last week, up from less than $85 a barrel last month. The rand also weakened amid clear signs that US interest rates will not be cut anytime soon.
The local currency fell from R18.45 to the dollar last week to more than R19.10 to the dollar overnight.
“Due to rising tensions in the Middle East, the local currency could come under significant pressure over the last two weeks of April, which could have a larger impact on local fuel prices in May.
“At this stage it is important to continue to focus on that indicator as we move into the new month,” AA says.
At the beginning of April, petrol prices increased from R95 to R25.12 per liter in Gauteng and R24.33 in coastal areas, the highest level since October last year. The wholesale cost of diesel currently stands at R22.45 per liter in Gauteng and R21.55 in the coastal region, also the highest since October.