The Automobile Association (AA) has warned motorists to brace for the biggest fuel price increase in April last seen before the impact of the Coronavirus.
Commenting in a statement on unaudited data released by the Central Energy Fund, the AA said stronger international oil prices combined with a weaker Rand points to 90 cents a litre increase in the price of petrol, 66 cents for diesel and 62 cents for illuminating.
In a further blow, the association stated that the amounts don’t include the 26 cents rise in the general fuel price and road accident levies announced by Finance Minister Tito Mboweni in his mid-term budget speech last month.
With these included, the price of petrol is set to increase by a whopping R1.16 a litre and diesel by 92 cents. It therefore means that a litre of fuel at the reef will cost R17.48 a litre and diesel R15.04 with R6.10 and R5.96 of the respective amounts being as result of the mentioned taxes.
“The rampant upward march of international oil prices has quickened alarmingly in the first weeks of March. The basic fuel price for petrol, for instance, shot up from R6.55 a litre at the February close-out, to R7.40 a litre in the first two weeks of March. Over the same period, the average Rand/US dollar exchange rate weakened by about 30 cents,” the AA said.
“The cost is not only direct, but throughout the value chain, and is battering consumers from all sides. It requires urgent review to help ease pressure on consumers who are battling to stay financially afloat”.
A final prediction is expected later this month before the new prices come into force on 6 April.