Expect another massive petrol price increase in April

Expect another massive petrol price increase in April

Following a hefty petrol price hike in March 2019, motorists should prepare themselves for another blow at the pumps in April.

According to mid-month data published by the Central Energy Fund, fuel prices are showing an under-recovery for all grades.

Motorist can expect a hike of about 96 cents per litre for petrol next month – diesel, meanwhile, could see a slightly lower increase of around 69 cents per litre.

While previous months in 2019 saw a stronger rand counteract increases in international petroleum prices, as things currently stand, the petrol price is being adversely affected by both metrics.

Movements in international petroleum prices are contributing around 72 cents per litre to the increase, while a weaker rand is contributing 24 cents per litre.

For diesel, the contributions are 42 cents per litre and 27 cents per litre, respectively.

International petroleum prices are largely being driven upward by rising oil prices, with the price of Brent crude around $67 a barrel.

The rand, meanwhile, has weakened against the greenback, trading close to R14.50 to the dollar.

Price hike and more

The under-recovery reported by the CEF does not include the higher taxes that will also be implemented from 1 April 2019.

In his budget speech in February, finance minister Tito Mboweni announced that the general fuel levy and the Road Accident Fund levy will be increased at the start of the new financial year.

This will translate to a further 20 cents per litre being added to the petrol price – a 5 cents per litre increase for the general fuel levy, and 15 cents per litre for the RAF.

The petrol and diesel price increases, as it stands mid-month, will be R1.16 and 89 cents per litre, respectively.

For the expected pump prices for April 2019 read more here

Original Source: https://businesstech.co.za/news/energy/305484/expect-another-massive-petrol-price-increase-in-april/

Website: https://businesstech.co.za

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