Commenting on unaudited released by the Central Energy Fund on Monday, the association said it expects the price of petrol to go down by 38 cents a litre from the previous 28 cents, diesel by 47 cents (up from 36 cents) and illuminated paraffin by 26 cents as opposed to the predicted 21 cents.
"The Rand was trading at around R12.00 to the US dollar at the start of February, and has gradually strengthened to an average level approaching R11.80 for the month," the AA said in a statement.
"Over the same period, international fuel prices dropped sharply. Although they have subsequently climbed, the increase has been moderate enough for South African fuel users to see some benefit. If the Rand maintains its current stable trend against the US dollar, the main driver of fuel price changes in the near future will be international petroleum prices".
Fuel levy worry
In an earlier announcement though, the association stated that the April first 52 cents a litre increase in the fuel levy announced by former Finance Minister Malusi Gigaba during his budget speech last week, as well as the one percent hike in VAT to 15%, would place an even greater strain on not only all motorists, but also the poorest of the poor making use of public transport.
"This 52 cents a litre hike in the fuel levies more than wipes out the 30 cents gain realised in the fuel price in January. Coupled with the increase in VAT, the increase to the fuel levies means South Africans, especially the poor, will, in our opinion, be faced with substantial hikes in their day-to-day living expenses. Many of these people will simply not be able to absorb them," it said.
Cabinet shuffle effect
On Tuesday morning, and following President Cyril Ramaphosa's cabinet shuffle on Monday evening, which saw Nhlanhla Nene replace Gigaba as Finance Minister after being fired by Jacob Zuma three years ago, and Pravin Gordhan return to replace Lynne Brown as Public Enterprises Minister, the Rand strengthened to R11.57 to the US Dollar with Brent Crude Oil trading at $67.35 a barrel.
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