Brace for another big fuel price hike in April

15-03-2019
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IOL
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South African motorists are still reeling from this month’s substantial fuel price increases of 74 cents a litre for petrol and 93 cents for diesel, but there is more on the way thanks to a deadly cocktail of high oil prices, weak currency and additional taxes.

When one factors in the additional fuel levies that take effect at the beginning of April, as well as mid-month fuel price data supplied by the Department of Energy, the cost of petrol is forecast to increase by around R1.18 a litre, while diesel should rise by 90 cents a litre, according to the Automobile Association.

While these price increases are not set in stone, they are more or less what you can expect if the current oil price and currency trends persist until the end of this month, and there is currently no evidence that either factor will provide any relief.

If the predictions turn out to be accurate then motorists in Gauteng will pay R15.78 for a litre of 93 Unleaded petrol and R16 a litre for 95 Unleaded, while the coastal price for 95 will rise to R15.41.

Motorists taxed to death

The aforementioned tax increase amounts to 20 cents a litre, of which 15 cents goes to the general fuel levy and 5 cents to the national crash fund.

This, according to the AA, will push the proportion of taxes and levies to around 38 percent of the price of petrol.

"When fuel taxes were proposed as a roads funding mechanism, the government resisted, claiming they were anti-poor. But the fuel levy has nonetheless risen by nearly 22% over the past three years,” the AA noted.

“Given what is emerging at the Zondo Commission of Enquiry, motorists are justified in asking what this money is being spent on."