March fuel hike will be a bit bigger than expected


Johannesburg – South African motorists and commuters will be hit with fuel price hikes in both March and April, with high international oil prices affecting next month’s fuel cost and increased taxes coming into effect the following month.

Commenting on unaudited month-end data from the Central Energy fund, the Automobile Association said that petrol prices were expected to rise by around 66 cents a litre in March, while diesel was looking set to go up by 57 cents and illuminating paraffin by 49 cents.

This will bring the price of 95 Unleaded up to R15.63 at the coast and R16.33 inland.

“The international oil price seems unstoppable,” the AA said. “We are in an eight-week streak of price climbs with no sign yet of a ceiling”.

Finance Minister Tito Mboweni announced the increased fuel taxes during his annual Budget Speech earlier this week. this comprises a 15cent per litre increase in the Road Accident Fund levy.

Worst of all, unless international oil prices start to subside, April’s increase will be even bigger than the 26 cent tax penalty.

The AA believes that the levy increases will ultimately cause more harm than good for the country.

“South Africans are not only feeling the pinch right now, but they are feeling the bite, and an increase to the levies will add to their woes.”

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