Huge fuel price hike for South Africa - AA

accreditation
Image: iStock
Image: iStock

Strong oil prices and an ever-weakening Rand have combined to set up another massive fuel price hike. This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel price data released by the Central Energy Fund. 

"These increases will be compounded by rises in fuel taxes which come into effect in April. There will be an additional increase of 15 cents for the fuel levy and 5 cents for the RAF levy (which don’t apply to illuminating paraffin)," the AA says

Given the latest data, petrol is expected to increase by a total of R1.28 and diesel by 77 cents.

The AA says: "The landed price of diesel continues to trade at around the level in reached in mid-February, after a substantial jump earlier in that month.

"But the real horror show is the landed price of petrol, which has increased from R6.60 a litre at the beginning of March, to R7.40 a litre now."

The Association says that at the same time, the Rand has gone downhill against the US dollar.  

The AA adds: "The daily exchange rate opened the month at R14.15 to the dollar and has slipped to R14.65. The effects on the fuel price make for unpleasant reading."

Diesel sees an increase of 57 cents (excluding the additional levies).

The petrol price has been battered by both product price increases and the weakening Rand, yielding an increase of R1.08 a litre, excluding the additional levies. 

"We are exceptionally concerned about the Rand's trajectory, given that no specific factors have arisen this month which could account for the decline," the AA says.  "The currency's slide might reflect an accelerating loss of appetite for foreign direct investment in South Africa. We urgently call on government to take concrete steps to address the economic weaknesses which are affecting the country's attractiveness to foreign capital," the Association concludes. 

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Brought to you by
Voting Booth
Do you think Mercedes will return to form later in the 2022 F1 season after two poor races?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, don't discredit them.
33% - 432 votes
Who cares, F1 is exciting again!
44% - 569 votes
No, it's Ferrari's turn to dominate again.
23% - 297 votes
Vote