By Annisa Essack

15:04:2021

Cash strapped South Africans might be in for a fuel price breather in May according to the Automobile Association (AA).

The association said in a statement that the reasons for this were due to stability on international petroleum markets and a stronger exchange rate, commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The current data shows the prospect of a 32 cents-a-litre drop in the price of diesel, and 27 cents for illuminating paraffin.

However, the price of petrol is set to see and increase of 6 cents a litre, but the AA says the exchange rate’s performance looks set to see a decline in the petrol price. So, if the current trends continue, there may be across-the-board relief from the recent series of fuel price hikes. The rand has gained almost 50 cents against the US dollar since mid-March.

The AA recently concluded that fuel is one of the most heavily taxed commodities in South Africa and the government should ensure that the pricing structure is still appropriate. It has recently called on the Parliamentary Portfolio Committee on Mineral Resources and Energy for a review of both the fuel price structure and fuel taxes.