Fuel price could reach R13.50 soon

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IOL mot feb28 fuel pump Reuters File photo.

The squeeze continues for motorists, as Pravin Gordhan hit them with a 23 cents per litre fuel levy.

This is the highest increase in the levy since 2010, and it comes at a time when motorists are facing increased costs from fuel hikes and, in Gauteng, possible toll fees.

Yesterday the finance minister announced an overall increase of 23 cents, which will include 8c per litre in the Road Accident Fund levy. Last year the levy went up by 20c, and the year before that, 10c.

The increase was met with concern.

"Consumers are getting touched by all manner of different taxes as the government battles to balance the books," said Paul Crankshaw, the deputy director of the National Consumer Forum.

The levy will simply aggravate an already bleak fuel price outlook in which increasing international oil prices and a weakening rand are set to result in a steep increase next month.

Gary Ronald, of the Automobile Association, said that with the recent increases in fuel and the levy starting in April, motorists could find themselves paying R13.50 a litre in just over a month's time.

"With this surge you will expect to see, in five weeks, price increases on the supermarket shelves," Ronald said. Anything that needed to be transported would see a price increase, he said. -The Star


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