Based on the unaudited month-end fuel price data that's released by the Central Energy Fund, the Automobile Association of SA predicts a price reduction of 11 cents a litre for petrol. Diesel and paraffin prices will increase by around 22 cents and 21 cents respectively.
"The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol," notes the AA.
The cost of diesel and paraffin going up is not good news for the transport sector and members of the public who rely on paraffin for heat, light and food prep.“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months,” says the AA.
There's a small light at the end of the tunnel as the Rand continues to shine."For as long as our currency continues to put in strong performances against the US dollar, the impact ofrebounding international oil prices will be softened," it concludes.
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