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Adjusted levies likely to wipe out any big fuel price drops - AA

16.03.2017

The Automobile Association (AA) has warned that the 30 cents a litre fuel levy increase and nine cents hike in the Road Accident Fund could have a substantial impact on any petrol price gains for April.

In a statement, the association said that price deductions, based on current data, could work out at 51 cents for petrol, 27 cents for diesel and 31 cents for illuminated paraffin, but added that the inclusion of the respective levies announced last month by Finance Minister Pravin Gordhan, could lead to a much smaller relief at the pumps.

"This means that while motorists may have expected the current price per litre of petrol to drop substantially, they will now only see it going down by around 12 cents a litre. Diesel users, on the other hand, will see an increase of 12 cents a litre, with the levies eating up any gains," the statement read.

It however remarked that the ongoing fall in international oil prices, as well as the decision by the Organisation of the Petroleum Exporting Countries (OPEC) to reduce output targets and the Rand's strengthen against the US Dollar, will be to the benefit of South Africans.

"The Rand has shed around four cents against the dollar since the start of March. If this period of relative stability in the exchange rate continues, the currency will only have a small influence on the fuel price at month end," the association said.

A short while ago, the national currency was trading at R12.82 against the Dollar with Brent Crude Oil at $52.13 a barrel.

Article written by Autodealer
16.03.2017
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