Massive fuel price increases announced
Here's how much consumers will pay at fuel pumps as of midnight
While motorists are set to pay hefty prices at the fuel pumps from midnight tonight (ie effective Wednesday), government has announced temporary relief measures to alleviate pressure on consumers.
The price of petrol will increase by R3.06 cents per litre while diesel prices are set to soar by R7.37 cents per litre.Illuminating paraffin users will also pay R11.67 cents per litre more this month.
The ‘historic’ adjustments were announced by the Department of Mineral and Petroleum Resources (DMPR) on Tuesday.
This is amid ongoing geopolitical tensions that have caused oil prices to skyrocket, impacting fuel prices and supply globally.
The DMPR and National Treasury earlier today (Tuesday) announced that government has agreed on ‘immediate intervention for the next month, and a broader package of measures to support households and key sectors of the economy’.
These measures include a temporary reduction in the general fuel levy.
Finance Minister Enoch Godongwana has proposed that:
• The general fuel levy is temporarily reduced by R3 per litre from Wednesday 1 April to Tuesday, 5 May.
This will reduce the general fuel levy for petrol from R4.10 per litre to R1.10 per litre and reduce the general fuel levy for diesel from R3.93 per litre to R0.93 per litre for one month.
“These amounts exclude other levies such as the Road Accident Fund levy and the Carbon Fuel Levy,” said Godongwana.
Impact on revenue
It is estimated that the partial reduction in the fuel levy will cost around R6-billion in foregone tax revenue for the one-month period. Treasury said the relief measure will be reevaluated on a monthly basis for the following two months.
The public has also been reassured that ‘there is sufficient fuel supply in the country to meet current and projected demand’.
“Reports of shortages in certain areas are largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks, and these are expected to self-correct in the next coming days.
“Motorists and businesses are encouraged to purchase fuel responsibly and avoid unnecessary stockpiling,” said Godongwana.
Further measures sought
National Treasury said work is also underway on a broader package of measures to support households and key sectors of the economy.
“The Minister of Mineral and Petroleum Resources will continue work to review fuel pricing over the medium term.
“Further details on additional support measures will be announced in due course,” said the finance minister.
Official fuel price adjustments for April:
• Petrol 93 (ULP & LRP): Three Rands and six-cents per litre (R 3.06 per litre) increase.
• Petrol 95 (ULP &LRP): Three Rands and six-cents per litre (R 3.06 per litre) increase.
• Diesel (0.05% sulphur): Seven Rands and thirty-seven cents per litre (R7.37 per litre) increase.
• Diesel (0.005% sulphur): Seven Rands and fifty-one cents per litre (R7.51 per litre) increase.
• Illuminating Paraffin (wholesale): Eleven Rands and sixty-seven cents per litre (R11.67 per litre) increase.
• SMNRP for IP: Fifteen Rands and sixty cents per litre (R15.60 per litre) increase.
• Maximum Retail Price of LPGas: One Rand and eight cents per kilogram (R1.08 per kg) increase and One Rand and twenty-three cents per kilogram (R1.23 per kg) increase in the Western Cape.
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