Fuel prices to increase substantially at midnight
This will be the third consecutive month of fuel hikes due to rising international oil prices
Motorists will be hit with a 65c/l petrol price hike at midnight on Tuesday, with the wholesale price of diesel rising 54c/l for high-sulphur diesel and 56c for low-sulphur diesel.
Illuminating paraffin is going up 47c/l.
It’s the third consecutive month of fuel hikes due to rising international oil prices, which offset the benefits of the rand firming against the dollar.
From Wednesday March 3, a litre of 95 unleaded petrol inland will cost R16.32, and 93 unleaded will cost R16.15. The wholesale price of 500ppm diesel will be R14.12 and 50ppm diesel will cost R14.18.
The AA said if oil continued on its trajectory, SA’s fuel prices might edge back to record territory in the medium term. The price of 95 unleaded inland peaked at R17.08 in October 2018.
“The international oil price seems unstoppable. We are in an eight-week streak of price climbs with no sign yet of a ceiling,” the association said.
It said increased economic activity made possible by the global rollout of the Covid-19 vaccine was leading to firming demand and higher prices. It also cited the effect of Saudi Arabia’s surprise cut, effective from February, of one-million barrels of oil per day from its production targets above and beyond its Opec commitments.
In April, motorists are to be hit with a fuel levy increase of 27c/l, which finance minister Tito Mboweni announced in his 2021 budget speech on February 24. This will comprise 15c/l for the general fuel levy, 11c/l for the Road Accident Fund levy and 1c/l for the carbon fuel levy.
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