Newcastillians should prepare for a sharp increase in petrol prices next month, while diesel costs are expected to decline. This is according to the latest insights from the Automobile Association (AA).
Based on analysis of the data from the Central Energy Fund (CEF), the AA has forecast a rise of 37 cents per litre for unleaded 93 petrol and 38 cents per litre for unleaded 95 petrol in May.
However, in a positive turn, the AA predicts a decrease of 35 cents per litre for diesel and a drop of 28 cents per litre for illuminating paraffin.
“The decrease to diesel prices is especially welcome as it will not result in higher input costs across various sectors, and this won’t be a driving factor in consumer prices increasing,” noted the AA.
The Association pointed out that a review of the data shows that the expectant increases in this cycle are a result of fluctuations in international product prices that took a sharp upward trajectory at the beginning of the month. Additionally, the relative stability of the Rand against the US Dollar in the early part of the month is contributing only a small margin to the expected increases.
“However, with tensions ramping up in the Middle East, the local currency could be under significant pressure going into the last two weeks of April and could have a more significant impact on local fuel prices in May. At this stage it’s important to keep an eye on that indicator as we head into the new month,” said the AA.
Furthermore, the AA stressed the importance of a comprehensive review of the fuel price structure, urging the Department of Mineral Resources and Energy (DMRE) to consider adjustments to counteract rising costs.
As Newcastle residents prepare for these changes, what are your thoughts on the matter? Share your views in the comments section below.
