Record fuel prices in the pipeline for April as tax hikes kick in

File picture: Ian Landsberg/African News Agency (ANA).

File picture: Ian Landsberg/African News Agency (ANA).

Published Mar 31, 2021

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JOHANNESBURG - Although slightly softer oil prices in the second half of March have taken some of the edge off the fuel price increase that’s planned for April, South African motorists are still facing a hefty hike that will lead to record prices.

According to the Automobile Association, the price of petrol is set to rise by about R1 a litre from next Wednesday, while diesel is set to rise by 66 cents.

Although the latest data from the Central Energy Fund points towards increases of 73 cents per litre for petrol and 39 c/l for diesel, based on oil price and currency movements for the month, April’s fuel price will also be affected by a 27 cents a litre increase in taxes. This comprises a 15 cents per litre rise in the General Fuel Levy, while the Road Accident Fund levy is set to increase by 11 cents and the Carbon Fuel levy by 1 cent.

These levies will now total R5.96 on every litre of fuel purchased, which represents almost 40 percent of the price you pay at the pumps.

Record petrol prices

April’s increase will lead petrol prices to record highs, with 95 Unleaded now set to cost R16.62 at the coast and R17.32 inland, surpassing the previous highs of R16.49 and R17.08 that were seen in late 2018. 93 Unleaded Petrol is set to cost R17.15 in the inland regions where it is available.

The AA warns that the latest increases will have a dire impact on ordinary South Africans.

"We can only stress again the severe additional damage these increases will do to household budgets, both directly and indirectly as the increased transport costs ripple throughout the value chain,” the association said.

“Increased public transport fares will surely also not be far off either".

IOL Motoring

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