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The Automobile Association of South Africa says increases to the fuel levy will contribute to the high fuel price increases expected at the end of March going into April.
The AA said in a statement on Monday that rising international petroleum prices “are being worsened by a dipping Rand/US dollar exchange rate, painting a grim picture for local fuel prices.”
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the Association said that “as things stand today, petrol is set for a 90 cents-a-litre rise, diesel for an increase of 66 cents, and illuminating paraffin an increase of 62 cents."
“These expected increases do not include the 26-cents a litre increases to the General Fuel and Road Accident Fund levies (excluding the one-cent increase to Carbon Tax) announced by the Minister of Finance in his February Budget, which come into effect in April,” the Association said.
The AA said with the addition of the levies, petrol is expected to increase by a whopping R1.16 a litre and diesel by 92-cents a litre.
“With the expected increases factored in, a litre of 95 ULP Inland (currently at R16.32/l) will now cost R17.48/l of which R6.10 will be taxed through the GFL and RAF. This means that at least 35% of the cost of a litre of this petrol will be taxed.”
“The price of diesel (currently pegged at R14.12/l) will increase to R15.04 of which R5.96 (including increased levies) will be taxed – or at least 40% of the total cost.”
The Association said that either the Rand or international oil prices would require a sharp reversal if the picture was not to deteriorate further by month-end, adding that government could no longer ignore the knock-on effects of severe fuel price rises.
