Motorists told to brace for steep fuel price increase in March

The Automobile Association (AA) has indicated that while the yearly adjustments in the fuel levy price will remain unchanged, it won’t offset the substantial increase at the pumps for March.

Brace

Although welcoming the announcement by Finance Minister Enoch Godongwana during his Budget Speech last month, the association said motorists should still brace for a heavy uptake of more than R1 a litre for both petrol and diesel come 6 March.

Commenting on the final unaudited data report by the Central Energy Fund on Friday (1 March), the AA said it expects the price of 93 unleaded to be R1.15 a litre dearer, 95 unleaded by R1.20 a litre and diesel by R1.18 a litre.

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The price of illuminating paraffin, while less than R1, will still increase by an indicated 63 cents a litre.

The increases will result in both grades of petrol eclipsing the R24 a litre mark at the Reef for the first time since the latter stages of last year, with diesel closing in on R23 a litre.

Reason for increase

“The main driver behind the increases is higher international product prices in addition to the higher average Rand/US Dollar exchange rate,” the AA remarked.

“While the weaker Rand is contributing a small margin to the under-recovery expected next month, the overall picture still looks bleak and consumers will feel the pinch.”

Commenting on Godongwana’s decision not to alter the levies for the third year in a row, the AA said, “these levies are traditionally increased in February and implemented in April, but the Minister of Finance heeded calls by the AA [and] indicated that this will not happen again this year.

“Although not a saving as such, any increases would have added additional pressure to fuel prices, and we again welcome his decision not to increase these rates for 2024.”

Final figures to be announced

Set to be implemented this coming Wednesday as mentioned, an official announcement by the Department of Mineral Resources and Energy is expected to be made on Tuesday 5 March, with the official figures. 

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