Yet another fuel price increase is on the cards for South African motorists come March.
This according to mid-month fuel data release by the Central Energy Fund (CEF) late last week. Commenting on data, the Automobile Association (AA) noted that the current data is projecting fuel prices to jump the R24 per litre mark for both grades of petrol, edging close to the R25 per litre record high seen last year.
Based on the current data, 95 octane petrol is set to increase by R1,35 per litre, 93 octane is expected to climb by R1,31 per litre, diesel by between R1,43 per litre and R1,59 per litre and illuminating paraffin by 96 cents per litre.
According to the AA, international product prices are playing a significant role in the expected fuel increases, while movement in the rand-to-US dollar exchange rate is marginally contributing to the under-recovery of the basic fuel prices.
“We remain concerned about these expected increases, which will undoubtedly put more pressure on already stretched consumers,” the association said in a statement. “These hefty increases also reaffirm our belief that a review of the fuel price is necessary to establish if any components within the current pricing model can be revised by the Department of Mineral Resources and Energy to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till.
“In addition, we again call on the Minister of Finance to strongly consider not increasing the General Fuel and Road Accident Fund levies in his Budget Speech on Wednesday 21 February. Any relief – even in the form of non-increases – would be welcome to a consumer base already reeling from economic hardship.”
