More misery ahead as steep petrol price increase expected next week

The Automobile Association (AA) on Friday warned South Africans that another petrol price increase is expected in March.

Using data from the Central Energy Fund (CEF), the AA said hikes in the prices of petrol, diesel and illuminating paraffin are likely.

The new fuel prices will come into effect next Wednesday.

How much more you’ll pay

The motoring organisation said 93ULP and 95 ULP petrol is expected to climb by between R1.22 per litre and R1.27 per litre.

“A litre of 95ULP inland will climb from its current level of R21.68/l to R22.90/l, while the price at the coast will increase from around R21.03/l to R22.25/l,” the AA said.

Diesel could increase by around 28 cents/litre.

Illuminating paraffin is expected to go up by 16 cents/litre.

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The AA said international oil prices and the weak Rand are the main reasons South Africans will have to fork out more to fill their tanks.

“In the case of petrol, the movement in international oil prices is contributing between 76 and 82 cents to the increases while the weaker average Rand to US Dollar exchange is adding about 46 cents to expected increases,” it said.

“In terms of the diesel price, the sole contributor to the expected increases is the weaker exchange rate.”

More stress for South Africans

The AA said the expected hikes in fuel prices will add more stress to South Africans who are already struggling to balance their finances.

“A 50/l tank of fuel, for instance, will now cost R61 more to fill, or R244 if filled four times during the month, which is significant,” it said.

“The cumulative effect on personal finances will be a further reduction of disposable incomes which will be exacerbated by increases to goods and services which must recoup the higher fuel input costs.”

The AA had some tips for motorists looking to decrease their fuel consumption.

“Ensuring vehicles are well maintained and in good mechanical condition, carefully planning routes, and avoiding heavy traffic, if possible, are some ways in which motorists can ensure better fuel consumption.”

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