South Africans can look forward to lower fuel prices as of midnight tonight. This is according to unaudited month-end fuel price data released by the Central Energy Fund. This means that you will soon be paying 30 cents less per litre for both grades of petrol, and 17 cents less per litre on the price of diesel. The price of illuminating paraffin will be dropping by 19 cents per litre.
The AA added that it is important for political leaders to note the strengthening effect the recent more hands-on governance approach has had on our exchange rate, reducing many input costs for both businesses and private citizens.
“However, at the same time, we re-iterate our concern that government should avoid using the fuel levy to fund fiscal shortfalls, as it is a concentrated tax with rapid effects on inflation and disposable incomes,” the AA highlighted.
Further, reviewing the fuel price history for 2017, the year experienced of the highest fuel prices in the country's history.
“If one graphs the exchange rate, it is inescapable that almost all sudden movements are associated with political events,” the AA stated. “We appeal to government to take a more judicious approach to policy and governance in future, as Rand weakness affects poorer people disproportionately.”