Johannesburg - The fuel price is expected to jump by nearly R2 at the beginning of next month.
This would be the second fuel price hike in two consecutive months.
Drivers started 2015 with a massive fuel drop, with a litre of petrol costing less than R10.
However, earlier this month it went up again, costing about R11, depending on area.
The price of petrol is expected to go up by about R1.55 a litre on April 1, while diesel is expected to rise by about R1.15 a litre.
The Automobile Association has warned that the Central Energy Fund’s preliminary mid-month data showed that South African motorists were set to be battered by higher international petroleum prices and the rand’s continuing decline against the dollar.
“The only positive is a slight softening of international petroleum prices in the first weeks of this month, but unless the rand gains some ground against the dollar, the outlook for motorists remains unfavourable,” the AA said.
Senior economic researcher at the Solidarity Research Institute, Paul Joubert, said the price of petrol would increase by the highest nominal amount in history for the second consecutive month.
TAX BURDEN, WEAK RAND TO BLAME
“A part of these increases stem from the 80.5c higher government levies on fuel announced by the minister of finance (Nhlanhla Nene) in his Budget speech.
“The remainder of the increases will be due to higher oil prices this month, as well as the weakening of the rand against the dollar,” he said.
Joubert explained that even if oil prices fell to about $46 a barrel during the rest of this month, as in mid-January, the petrol price would still rise by about R1.40 a litre.
Pietermaritzburg Chamber of Business chief executive Melanie Veness said: “We are operating in quite a volatile economic environment, and enterprises are advised to factor this volatility into their business models.
“We didn’t see a large reduction in transport costs and goods on the shelves, so it is hoped that we don’t see a sudden surge in prices in reaction to this fuel increase.”
Stephen le Roux of Growthpoint Limited said the fuel price hike would have a negative effect on the retail industry as consumers who owned cars would not have enough disposable income to spend on shopping or leisure.
The Department of Energy is to make the final announcement regarding fuel price changes next Friday.
The Star