Fuel price woes: February increase will be bigger than expected

An even harsher than initially predicted fuel price increase awaits motorists at the pumps in February, according to the Automobile Association (AA).

By how much?

While it was reported earlier this week that increases of between 36 and 42 cents a litre and between five and 17 cents for diesel appeared on the cards, AA, commenting on the final mid-month unaudited data report by the Central Energy Fund, said it expects the rises to be steeper.

In accordance with findings, the price of petrol now looks set to rise by 57 cents a litre for 93 unleaded and 52 cents for 95 unleaded, while diesel hikes are projected to be between 22 and 33 cents a litre.

The price of illuminating paraffin, meanwhile, will go up by 38 cents, a litre versus the initial prediction of 20 cents.

Attributing the increases to stronger international oil prices and a stronger Rand, AA said, “Any expected increase to local fuel prices, while the strength of the Rand against the US Dollar is limiting these increases by between 10 cents and 14 cents on all fuels.

“Any increases to fuel prices now, at a time when South Africans are grappling with, among other issues, financial pressures and rolling blackouts is unwelcome”.

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Not a good time for more increases

It also reiterated previous calls that a revision of the fuel price structure needs to happen in order to avoid the economy facing yet more challenges.

“Last year, the Minister of Transport, Fikile Mbalula, heeded calls by AA not to increase the two main levies attached to the petrol and diesel prices; the General Fuel Levy and the Road Accident Fund levy,” the association continued.

“We again urge the minister to follow this same route when he delivers his Budget Speech this year and to consider the implications of increasing these taxes on all South Africans. Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances.

It further added that, “Consumers continue to be extremely embattled and increases to the two fuel levies will be counter-productive, are ill-timed, and have disastrous outcomes for millions of people already struggling to make ends meet”.

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When will it happen?

An announcement by the Department of Energy on the final price adjustments is expected soon in light of the changes being due for implementation on 1 February, and not the eighth of the said month as erroneously previously reported.