Massive increase in petrol and diesel
An increase in the fuel price is predicted for next month, so get ready to tighten the belts even more.
The Automobile Association (AA) is predicting an increase of between 31c and 35c a litre for petrol, this to be added to the 30c a litre increase in the fuel levy, which becomes effective from April.
The AA says that sustained gains in international petroleum prices are the biggest factor affecting the predicted hikes.
“The current picture is of a price increase ranging from 31c to 35c a litre for petrol, 60c for diesel and 52c for illuminating paraffin,” the association says.
“Although the average Rand/US dollar exchange rate has continued to retreat since the beginning of the month, this positive factor has been overcome by the renewed uptick in oil prices.”
The next fuel price increase will also include the 30c a litre hike in the fuel levy announced by Finance Minister Pravin Gordhan in his February budget.
“Combined with the fuel levy increase, the predicted increase of 60c a litre for diesel, could mean a price increase of nearly a rand a litre for diesel users.
“Along with the further interest rate hike recently announced by the SA Reserve Bank, motorists’ budgets are likely to come under renewed pressure next month,” the AA says.
