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The Automobile Association says South African drivers can expect "mbadive" declines in gas prices in December, but adds that "these could be tempered by adjustments to retail margins". and wholesale and by the continued use of Slate Levy ".
"The good news is a probable gasoline price reduction of R $ 1.85 per liter, with a diesel drop estimated at R $ 1.40 and a rinsing paraffin drop of R $ 1.28. . With these expected declines, fuel prices will return to levels last seen around the middle of 2018, "said AA, commenting on the unverified fuel price data published at the end of the month by the Central Energy Fund.
"These mbadive declines result from a combination of substantial declines in international oil prices and a slightly firmer rand, which has strengthened sharply against the US dollar since its last peak in early September. near the R50,50 compared to the greenback, "said the Association. added.
"However, it is possible that all these decreases do not affect the motorist. The months of April, September and November were marked by adjustments of various taxes included in the fuel price structure. The December adjustment is due to, among other things, wholesale and retail margins, which could mitigate some of these declines. Last year, adjustments to these numbers were less than five cents per liter, "explained AA.
There is also the question of Slate Levy, which can be kept or not. According to AA, the slate tax is used to "recover the losses resulting from the under-recovery of the price of fuel" when the cumulative balances of gasoline and diesel represent more than 250 million rand. By the end of September, the negative balance had risen to R2.2 billion, which was apparently offset by the imposition of a 21.92 cent tax in November.
"If Slate Levy brings the slate balance back below the threshold by the end of November, it's likely to be reset. Otherwise, another Slate levy levy will apply for December, which will offset some of the drop in fuel prices, "said the organization.
Article written by Ryan Bubear
Ryan has spent most of his career in online media writing about everything from sports to politics to other forms of crime. But his true pbadion – lit by a 1971 Austin Mini Mk3 still tucked away in a dark corner of his garage – is lifeless – is automotive variety.
To follow @Ryan_Bubear on Twitter.
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