Fuel prices could reach record highs in April
Combined with the levy increase, petrol could rise as much as R1 a litre and diesel 66c
The Automobile Association (AA) expects another major hike in fuel prices in April with 95 unleaded petrol heading into record territory when the department of mineral resources & energy and energy makes the official adjustment on April 7.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The additional 27c to the General Fuel Levy and Road Accident Fund levies announced by finance minister Tito Mboweni in February come into effect in April and will add extra costs to a litre of fuel, in addition to the increased monthly adjustment.
Combined with the levy increase, petrol could rise by as much as R1/l, and diesel by 66c. This was lower than the R1.16/l petrol price increase and 92c diesel increase predicted by the AA earlier in March.
However, the fuel price for April will be in the region of R17.32/l for 95 unleaded inland, comfortably surpassing the previous high of R17.08 set in late 2018, the AA said.
With the increases to the levies, motorists will be paying R5.96 per litre of fuel, or between 35% and 40% to taxes, on every litre purchased.
The association says the recent two-month streak of petroleum price increases topped out in the third week of March and retreated slightly. The rand had a similar trajectory.
“The unfortunate reality is that the expected hikes will still be substantial. The minor relief of the pullback in petroleum and the exchange rate will be cold comfort to South Africans reeling from the ongoing economic damage being inflicted as a result of Covid-19, and a decade of economic decline,” the AA said.
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