News

Carbon tax will prevent petrol price cut in June

This month has been a roller-coaster month for the South African rand and the international oil price and as we get closer to month end we are able to get clarity on what the fuel price will be.

According to unaudited month-end data which was released by the Central Energy Fun the Automobile Association of South Africa (AA) say they are still unsure about the final outcome for June.

With the rand fluctuating between R14.15 and R14.60 to the US dollar it could mean a reduction in the price of petrol by about 10 cents, however the price of diesel could increase by about 14 cents a litre.

The introduction of carbon tax will however affect the fuel price with the result that petrol will only reduce by 1 cent per litre and diesel will result in a 24 cents a litre increase.