In a statement, the AA stated that it had incorrectly predicted a massive spike of 92 cents a litre in the price of petrol, saying it had based its findings on the fuel price under-recovery of April 25th as pointed out by unaudited data released by the Central Energy Fund.
“However, the Department of Energy has based its new fuel price for May on the figures of Tuesday (24 April), which indicate an increase of 49 cents a litre for petrol, 60 cents for diesel, and 52 cents for illuminating paraffin,” the AA continued.
It blamed the latest spike on strengthening international oil prices and the weaker Rand relative to the US Dollar, stating that despite the amount being lower than initially predicted, it would still result in petrol being 23 cents a litre up on the record R14.49 posted in December last year.
“We remain concerned about the increases, especially those to illuminating paraffin. Users of this fuel will be hit particularly hard as we head into the colder months where many households use this fuel for lighting, heating and cooking. Going into May, there is already an under-recovery of 46 cents a litre. If the Rand doesn’t appreciate significantly against the US dollar, and if international prices don’t decrease, this will mean another increase into June," the AA said.
Towards the closure business on Thursday, the Rand had slumped to R12.41 against the Dollar with Brent Crude Oil trading at $73.21.
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