Cape Town – The Automobile Association of South Africa says it will not be surprised to see another huge fuel price increase in March, while the East Cape Fuels has projected an above R1 fuel price increase for next month.
East Cape Fuels – an Engen sales and distribution company that provides mid-month price estimates – has revealed a predicted increase from R1.23 per litre of fuel.
It's projections show the price of fuel will increase as follows:
- Diesel 50ppm – R1.37 per litre increase
- Unleaded petrol (ULP) 95 – R1.24 p/l increase
- Unleaded petrol (ULP) 93 – R1.23 p/l increase
- Paraffin – R1.31 p/l increase
The result could mean a litre of diesel rising to just under R19.50, ULP 93 to more than R21.10 and ULP 95 to just under R21.40
IOL reported on Tuesday petrol had already increased by R4.45 in 2021.
The Mineral Resources and Energy Department is expected to announce the price of fuel products for the month of March later this month.
AA spokesperson Layton Beard told IOL on Wednesday that he would not be surprised to see yet another fuel price increase in March.
“I wouldn't be surprised, no. I think the way that oil is going – even though the Rand is holding its own at the moment and performing very well in fact, I think the fact that oil is at record highs is outstripping any gains that the Rand may get.”
Fuel prices are mainly affected by the Rand-Dollar exchange and oil prices, he explained.
“Traditionally the increases have always been announced in February – the minister of finance has always announced increases in line with inflation, sometimes a little less and sometimes a little more – but more or less around inflation. The issue for us, [AA] we always called for those levies not to be increased”.
The general fuel levy (GFL) is R3.93 whereas the Road Accident Fund (RAF) levy is R2.18, with increases to these levies adding extra pressure to the fuel price which is under enormous pressure, Beard said.
The AA has launched a petition urging the South Africa government to review the fuel value chain which contributes to the fuel price in South Africa. Rising fuel prices find its effects in every sector, corner and citizen of the country.
The AA’s petition has received approximately 31,000 signatures. You can find the petition here.
IOL