Fuel levy increase to leave motorists’ pockets running empty

The fuel price is set for a steep hike as higher fuel levies kick in, and an increase in international fuel prices makes its presence felt, says the Automobile Association (AA) .

According to a statement issued by Automobile Association (AA), motorists can anticipate an increase of around 63 cents a litre for petrol, 57 cents for diesel. “Illuminating paraffin, which is not affected by the levy increases, is expected to decrease by around four cents,” the AA says.

The Association says international petroleum product prices, which have remained stable since mid-February, have climbed sharply since 12 March and the Rand / US dollar exchange rate has remained stable over the same period, meaning that most fuel prices would have increased even without the additional taxes announced in February’s budget speech.

“The General Fuel Levy and Road Accident Fund (RAF) levy will go up in April by a combined 52 cents a litre, meaning substantial price increases at the pumps. These increases will push the total amount of taxes paid to the levies to R5.30 a litre (from R4.78). This means that around 40% of every litre of petrol is being paid to indirect taxes via fuel purchases,” they explain.

These increases will also push the price of a litre of petrol closer to its December all-time high of R14.49 (93 octane) and R14.76 (95 octane) inland. Any further increases to international petroleum prices in the near future can mean local pump prices quickly surpass these highs.

“An increase of 63 cents a litre to fuel means users will be paying around R14.17 for 93 unleaded octane inland, and R13.76 at the coast, concludes the AA.

via www.aa.co.za