South African consumers should brace themselves for petrol and electricity price hikes in April.
The Automobile Association (AA) said it expected a further hefty hike in fuel prices in April when the department of mineral resources and energy makes an official statement next week.
“The additional 27 cents to the general fuel levy and Road Accident Fund levies announced by Tito Mboweni in February come into effect in April and will add extra costs to every litre of fuel purchased, in addition to the increased monthly adjustment,” said the AA.
The AA added that the petrol price was set to increase by 73 cents, diesel by 39 cents, and illuminating paraffin by 37 cents a litre.
“With the increase to the levies factored in, petrol could rise by as much as R1 a litre, and diesel by 66 cents a litre. The levies are not added to the cost of illuminating paraffin,” said the AA.
“This means that the fuel price for April will be in the region of R17.32 a litre for ULP 95 inland, comfortably surpassing the previous high of R17.08 set in late 2018,” says the AA.
Meanwhile, the electricity price will increase by 15.63% on Thursday. This comes after Eskom and the National Energy Regulator of South Africa reached an agreement on Eskom’s allowable revenue for the 2021/2022 financial year.
The agreement was confirmed in a court order in February.
BUSINESS REPORT ONLINE