Photo by: Creamer Media
Motorists should brace for another massive fuel price hike next week, the Automobile Association (AA) warned on Friday.
Given the latest data from the Central Energy Fund (CEF), the AA expects petrol to increase by a total of R1.28 a litre, diesel by 77 cents a litre, and illuminating paraffin by 56 cents.
This is its expectation due to a combination of strong oil prices and the weak rand.
The landed price of petrol increased from R6.60 a litre at the beginning of March to R7.40 a litre currently.
The AA pointed out that the expected fuel price increases for April will be compounded by rises in fuel taxes which come into effect at the beginning of the month.
There will be an additional increase of 15 cents for the fuel levy and 5 cents for the Road Accident Fund (RAF) levy," the AA said. It pointed out that the RAF levy does not apply to illuminating paraffin.
The AA expects increases for diesel and illuminating paraffin of 57 cents (excluding the additional levies) and 56 cents a litre respectively.
It expects the petrol price, having been battered by both product price increases and the weakening rand, to increase by R1.08 a litre – excluding the additional levies.
"We are exceptionally concerned about the rand's trajectory, given that no specific factors have arisen this month which could account for the decline," commented the AA.
"The currency's slide might reflect an accelerating loss of appetite for foreign direct investment in South Africa. We urgently call on government to take concrete steps to address the economic weaknesses which are affecting the country's attractiveness to foreign capital."