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AA expects slight petrol price decrease in March - but increase in taxes looms

FEBRUARY 24, 2017
AA expects slight petrol price decrease in March - but increase in taxes looms

While the Department of Energy is expected to announce the fuel price adjustments for March 2017 on Friday afternoon, the Automobile Association of South Africa (AA) said it expects that there will be a slight decrease.

It warned thought that this won’t mean much for South African consumers after the fuel and Road Accident Fund levy increases that were announced by Finance Minister, Pravin Gordhan, in his 2017 National Budget Speech on Wednesday.

According to the AA, the current projections, based on the latest available data from the Central Energy Fund, petrol, diesel and illuminating paraffin by eight cents prices will decrease by 9 cents, 2 cents and 8 cents, respectively, from Wednesday.

However, the tax adjustments announced by Minister Gordhan mean that the April 2017 fuel levy goes up by 30 cents per litre, while the RAF levy will go up by a further 9 cents, adding 39 cents to both petrol and diesel prices.

"It would take quite a substantial effort from both the Rand and oil prices to offset the tax hikes and prevent higher fuel prices in April," the AA said.