The Automobile Association of South Africa (AA) expects another hefty hike in fuel prices to be announced next week will lead to record high prices for 95 unleaded petrol in South Africa in April.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the AA stated that the prices of all types of fuel were set to rise.
“According to the latest data, petrol is set for a massive increase of 73 cents a litre, diesel an increase of 39 cents, and illuminating paraffin and increase of 37 cents,” the AA said.
This was not the only increases which had to be taken into account, however, as a further 27 cents will be added for the General Fuel and Road Accident Fund levies, as announced by Finance Minister Tito Mboweni in February.
“With the increase to the levies factored in, petrol could rise by as much as R1 a litre, and diesel by 66 cents a litre. The levies are not added to the cost of illuminating paraffin,” the AA said.
“This means that the fuel price for April will be in the region of R17.32 a litre for ULP 95 inland, comfortably surpassing the previous high of R17.08 set in late 2018,” said the AA.
- ULP 95 – increase of R1
- Diesel – increase of R0.66
- Illuminating paraffin – increase of R0.37
35-40% in taxes
The AA said the recent two-month streak of petroleum price increases topped out in the third week of March and retreated slightly, while the Rand had a similar trajectory.
“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,” said the AA.
The Association noted that the increases to the fuel prices would have widespread negative consequences for everyone in the country, not just for motorists.
“We can only stress again the severe additional damage these increases will do to household budgets, both directly and indirectly as the increased transport costs ripple throughout the value chain. Increased public transport fares will surely also not be far off either,” the AA said.
Notably, from April South African motorists will be paying R5.96 per litre of fuel to the GFL and RAF levies, or between 35% and 40% to taxes on every litre purchased, the AA claimed.