More petrol hikes on the cards for motorists in April

Motorists expecting reprieve at the petrol pumps in April are set for misery based on the latest report by the Central Energy Fund (CEF).

Increase

While only expected to be enforced on the 5th of April, the first unaudited data findings points to a further increase of 43 cents a litre for 93 unleaded and 42 cents for 95 unleaded.

After the uptake in March, both diesel and illuminating paraffin are set for decreases, though in the case of the former, by a mere one cent. The latter though is being lined-up for a drop of 41 cents.

Although not the final estimations, the projection points to more gloom following the national currency’s worst performance against the US Dollar in three years.

The Rand

At the opening of business earlier this week, the Rand was trading at R18.60 against the greenback, its lowest since the first month of the pandemic in May 2020.

“The fact that the US economy is doing better than any other economy in the world caused the market to flock back into the US Dollar,” investment firm, TreasuryOne, was quoted by BusinessTech as saying.

“This puts pressure on emerging markets. As the market follows the US Dollar, it is usually the market EM that loses its shine, and this case is no different.”

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Fuel levy

A contributing factor that could lead to the final price being higher come next month, is the reported adjustments in the fuel price levy. The Automobile Association (AA) in a statement last month described it as a shock many South Africans are unable to afford.

“Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances,” the AA said in a statement.

“Consumers continue to be extremely embattled and increases to the two fuel levies will be counter-productive, are ill-timed, and have disastrous outcomes for millions of people already struggling to make ends meet,” it said.

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