AA predicts petrol price will go down by 51 cents in April

AA predicts petrol price will go down by 51 cents in April
FILE IMAGE: Bay Bulletin.

The Automobile Association says the petrol price is expected to go down however this could be negated by a rise in the Road Accident Fund levy.

The Automobile Association of South Africa has predicted that petrol and diesel will go down in April 2017.

The association was commenting on the mid-month fuel price data released by the Central Energy Fund this week.

It says petrol may decrease by 51 cents per litre, diesel by about 27 cents a litre, and illuminating paraffin by 32 cents but this may be affected by a rise in road accident funds tax, at probably 9 cents.

The association said that while motorists may have expected the current price of a litre of petrol to drop substantially, they will now only see it going down by around 12 cents a litre.

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“Diesel users, on the other hand, will see an increase of 12 cents per litre,” the association said in a statement.

“The levies [will be] eating up any gains,” it said, noting that international petrol prices have continued to decline leading up to the expected drops at the end of the month.

“OPEC’s reduction in its crude oil output targets has been countered by increasing global oil stocks held by non-OPEC nations,” the AA said.

“This has gradually pushed the oil price down to near the levels it was maintaining before OPEC’s output targets were adjusted, which is good news for South Africans,” it said.

(edited by MLM)

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