Bitter-sweet change in fuel prices for motorists
There's bitter-sweet relief for some motorists as the fuel price drops, but stress for others as the diesel price increases.
Lower international petrol prices and a stronger Rand/US dollar exchange rate have combined to create a pleasing 70c a litre drop in the cost of petrol.
According to the Automobile Association (AA), some measure of stability has returned to the fuel price picture.
“Unfortunately, a steady appreciation in international diesel prices has meant that diesel will be up by around 15c a litre,” a statement from the AA said.
The announcement by Minister of Finance Pravin Gordhan, of a 30c a litre increase in the fuel levy, means that any movement in the fuel prices at the end of March will be negatively impacted.
The AA states that it was concerning that motorists were again being called upon to fund shortfalls in government revenue.
“The National Treasury forecasts that the increased levy will add approximately R6.8-billion to the fiscus, this revenue is collected from the most economically active and heavily-taxed sector of the population,” the association adds.
The AA also comments that government appeared uncertain over its approach to increases in the fuel levy.
“When a moderate increase of 10c to 15c a litre was proposed to fund the Gauteng Freeway Improvement Project (GFIP), it was rejected by the South African National Roads Agency Limited (Sanral),” the association says.
The AA pointed out that the combined increase in the fuel levy over the past two Budgets (2015 and 2016) amounted to 60.5c a litre, with an additional 50c a litre going to the Road Accident Fund (RAF) since 2015.
