Brace yourself for another fuel hike
Fortunately, there was a decrease for the period in the price of crude oil, otherwise the petrol increase would have been higher.
Price of petrol will increase by 26 cents a litre on Wednesday.
The Minister of Energy, Jeff Radebe, on Sunday made this announcement.
This latest record-breaking hike will see motorists further inland fork out R16.02 per litre when they fill their tanks up.
Petrol was already at an all-time high after June’s increase of 82 cents a litre and another fuel price hike will hit already-reeling consumers hard.
The main reason given for the fuel price adjustments were the depreciation of the rand against the dollar. This had the most significant impact with the currency deteriorating from an average R12.51 to the dollar, to R13.29 to the dollar.
The AA explained why South Africans might have to count ourselves lucky: :“The average Rand/US dollar exchange rate used to calculate the basic fuel price has slipped in a virtually straight line since the start of June.
“Fortunately, international oil prices have retreated at a similar rate, resulting in a fairly moderate fuel price increase outlook for July.”
Fuel levies and taxes
There has been an increasing call for the country to strike in regards to the high fuel prices.
While international politics and economies play a role in SA’s fuel price, levies make up almost 40 percent of the price of fuel at the pumps – amounting to R5.30 per litre of fuel.
The General Fuel Levy is a tax charged for every litre of petrol sold. This money is administered by the National Treasury, and is treated as a general tax.
Money collected through the RAF levy portion of every litre of petrol sold is used to fund the Road Accident Fund, which uses the money to compensate victims of road accidents in South Africa.
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