This is according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
“The Rand/US dollar exchange rate has been virtually flat since the beginning of the month, with the local currency having weakened against the dollar by around two cents,” the AA said, adding that over the same period, international oil prices have retreated slightly in favour of South African fuel users.”
The Association said petrol is indicating a likely decline of around 12 cents a litre, diesel 18 cents, and illuminating paraffin 13 cents.
However, the Association noted that despite these predicted decreases to the basic fuel price, the additional 52 cents to the fuel levies will push the overall price of fuel at the pumps up going into April.
“Even though there’s a decrease of 12 cents a litre to the basic price of petrol, the overall price will jump 40 cents in April because of the increases to the General Fuel and Road Accident Fund levies announced by former Finance Minister Malusi Gigaba in his Budget Speech in February,” the AA said.
The Minister announced the General Fuel Levy will increase by 22 cents a litre from R3.15 to R3.37 (7% increase), and the RAF Levy will increase by 30 cents from R1.63 to R1.93 (18% increase).
At present 38% and 39% of a litre of 93 octane unleaded petrol inland and coastal goes towards taxes (levies).
A litre of unleaded 93 octane fuel inland currently costs R13.54. With a predicted basic fuel price decrease of 12 cents (in April), this will move down to R13.42. But, the overall price of a litre will increase to R13.94 with the additional 52 cents a litre on the levies, concluded the AA.
Via Automobile Association (AA)
