REMINDER: Petrol set to increase on Wednesday

THE Automobile Association has urged government to reconsider the high cost of the taxes added to fuel. This as yet another petrol increase is expected in three days time. The Department of Energy has confirmed that petrol will rise by around 26 cents a litre, diesel 24 cents and illuminating paraffin 20 cents per litre.

The Automobile Association said if it wasn’t for the decline in oil prices, the increases could have been higher.

“If oil had remained flat in June instead of declining, price increases of 40 cents a litre would have been likely for July. And if it had followed its upward path of May, the increase would have been nearly 80 cents,”  the AA said.

Also read: Record high petrol price hike set for June 

The AA concluded by saying: “The taxes account for up to one-third of the petrol price. Currently, R5.30 of every litre of petrol is paid towards the General Fuel Levy and the Road Accident Fund Levy. We do foresee further fuel price hikes, driven by South Africa’s weak economic position and potential fallout from trade tariff disagreements between the USA and other nations.”

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