Shock waiting at fuel pump in March

Henry

South Africans can expect a big increase in the price of fuel next month. So much so that the price of both grades of petrol will possibly pass the mark of R24 per liter in March.

Current unaudited data from the Central Energy Fund (SEF) shows that next month the price of 95-octane petrol is expected to increase by R1.35 per liter and the price of 93-octane petrol by R1.31 per litre.

The price of diesel is expected to rise by between R1.43 per liter and R1.59 per liter and the price of paraffin by 96c per litre.

The Automobile Association (AA) says international product prices play a significant role in the expected fuel price increases, while movement in the rand-dollar exchange rate contributes marginally to the under-recovery of the basic fuel prices.

The AA says it is concerned that these expected fuel price increases will only put further pressure on already struggling consumers.

“These substantial increases also confirm our belief that a review of the fuel price is needed to determine if any components within the current pricing model can be reviewed by the Department of Mineral Resources and Energy to mitigate rising costs, particularly for diesel as higher input costs will be recovered from the cashier through higher prices.”

The AA again calls on the finance minister to strongly consider not increasing the general fuel and road accident fund levies in his budget speech of 21 February.

“Any relief – even in the form of no increases – would be welcome for a consumer base already reeling under economic hardship.”