Automobile Association (AA) warns fuel hike expected in March. Picture: File
The AA has warned South African motorists and consumers to expect a major fuel price hike come next month.
Following the release of the mid-month fuel data by the Central Energy Fund (CEF), the association explained that the current data was projecting fuel prices to increase to at least R24 per litre mark for both grades of petrol.
The AA said the upcoming increase was reminiscent of the record high of R25 per litre as witnessed last year.
Based on the data, 95 octane petrol is set to increase by R1.35 per litre, while a litre of 93 octane will set motorists back by an additional R1.31.
Diesel may increase by anything between R1.43 to R1.59 per litre, while paraffin will increase by 96 cents per litre.
“We remain concerned about these expected increases which will undoubtedly put more pressure on already stretched consumers. These hefty increases also reaffirm our belief that a review of the fuel price is necessary to establish if any components within the current pricing model can be revised by the Department of Mineral Resources and Energy (DMRE) to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till.”
While the association said international product prices had played a significant role in the surge in fuel prices, movement between the Rand versus US Dollar exchange rate had contributed only marginally to the under-recovery of the basic fuel prices.
“We again call on the minister of Finance to strongly consider not increasing the General Fuel and Road Accident Fund levies in his Budget Speech on February 21. Any relief, even in the form of non-increases, would be welcome to a consumer base already reeling from economic hardship,” AA added.
The upcoming fuel price will be the second hike for the year as in February, the Energy Department announced a 75 cents per litre hike effective from February 7, 2024.
Diesel prices were also not spared as it increased by between 70 to 73 cents.
The Star
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