The Automobile Association says variable international oil prices, an equally unpredictable rand/dollar exchange rate and the impending Carbon Tax have combined to provide a “mixed picture” for fuel prices in June.

"International oil prices have been up and down in May. The basic petrol price has traded between 740 and 780 cents a litre, which averages out 19 cents lower for the month," the AA said, commenting on unaudited month-end data released by the Central Energy Fund.

The rand was also variable, although it traded in a fairly restricted range between roughly R14,15 and R14,60 to the dollar.

"The rand was about 12 cents weaker over the month," the Association noted.

"This means that petrol prices will still drop by about ten cents a litre. However, the basic diesel price increased slightly, by two cents a litre, so diesel users are looking at an increase of about 14 cents a litre, with a nine cent hike for illuminating paraffin," the AA explained.

However, the AA added the overall picture would look a little difference with the introduction of the Carbon Tax in June. This will add nine cents a litre to the petrol price, and ten cents to the diesel price.

“In effect, this means that petrol will decrease by only one cent a litre, while diesel will increase more significantly by around 24 cents a litre.”

The AA added any number of “current issues” could further impact the fuel price in the second half of the year, and advised against relying on fuel-price stability in the short- to medium-term.

"We suspect there may be more economic storms ahead," it warned.

Original article from Car