Motorists can expect petrol price to drop by about 10 cents a litre in June, the Automobile Association predicted on Tuesday, based on unaudited month-end data released by the Central Energy Fund.  But the introduction of the carbon tax – which will add nine cents a litre to the petrol price – will likely cancel out the drop.

The AA foresees that diesel users are looking at an increase of about 14 cents a litre. When the carbon tax is added, the increase is larger.

“In effect [….] petrol will decrease by only one cent a litre, while diesel will increase more significantly by around 24 cents a litre,” noted the AA.

Variable international oil prices, and an equally unpredictable rand/US dollar exchange rate combined to provide the mixed picture, said the group.

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“International oil prices have been up and down in May. The basic petrol price has traded between 740 and 780 cents a litre, which averages out 19 cents lower for the month.”

https://www.fin24.com/Economy/carbon-tax-expected-to-cancel-out-petrol-price-drop-in-june-aa-20190528