June launch of carbon tax adds to gloomy outlook for motorists

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June launch of carbon tax adds to gloomy outlook for motorists
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Introduction of carbon tax and unpredictable rand/US dollar exchange rate will keep motorists on an economic knife-edge.

"This means that petrol prices will still drop by about 10c a litre. However, the basic diesel price increased slightly, by 2c a litre, so diesel users are looking at an increase of about 14c a litre, with a 9c hike for illuminating paraffin."

However, the AA says the overall picture may look a little different with the introduction of the carbon tax in June. This will add 9c a litre to the petrol price and 10c to the diesel price. "In effect this means that petrol will decrease by only 1c a litre, while diesel will increase more significantly by around 24c a litre," notes the AA.

The association says any number of current issues could affect the fuel price in the second half of the year and advises against relying on fuel price stability in the short to medium term.

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