The Automobile Association (AA) has noted that fuel levy increases will contribute to what are expected to be high fuel price increases at the end of March.
Commenting on the unaudited mid-month fuel price data released by the Central Energy Fund, the AA has noted that a climb in petrol prices is being worsened by the international rise in oil, along with a dipping rand/US Dollar exchange rate.
The expected increases for the different types of fuel are as follows:
- Petrol – 90 cents increase per litre
- Diesel – 66 cents increase per litre
- Illuminating Paraffin – 62 cents per litre
These expected increases do not include the 26 cents per litre increase due to the updated General Fuel and Road Accident Fund levies, which will come into effect in April.
“Within the current scenario 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,” said the AA.
According to the AA, a litre of 95 ULP Inland – which currently stands at R16.32 – may cost R17.48.
R6.10 of this will be tax – which equates to 35% of the price of a litre of petrol.
When running the same equation on diesel – 40%, or R5.96 per litre – would be tax.
“Either the rand or international oil prices will require a sharp reversal if the picture is not to deteriorate further by month-end,” the AA said.