Another huge petrol hike expected on Wednesday

The hike is a result of stronger oil prices, increases in fuel taxes and a weaker rand.

The Automobile Association (AA) predicts another fuel price hike on Wednesday. The price of petrol is expected to rise by R1.28 a litre, diesel by 77 cents a litre, and illuminating paraffin by 56 cents per litre.

The hike is a result of stronger oil prices, increases in fuel taxes and a weaker rand according to 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 15c a litre on the fuel levy and 5c a litre for the Road Accident Fund.

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

“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 and illuminating paraffin have come off comparatively lightly, with increases of 57 cents (excluding the additional levies) and 56 cents a litre respectively. But 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.”

The association said it was very concerned about the rand’s trajectory.

“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 hike follows another huge hike in February where petrol spiked from R6.60 a litre at the beginning of March to R7.40 a litre.

(Compiled by Gopolang Chawane)

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