Cape Town — South African motorists can expect another difficult month as fuel and diesel prices are expected to increase exponentially for March, the Automobile Association (AA) South Africa said.
Following an increase in fuel prices in February, unaudited data from the Central Energy Fund (CEF) points to a significant increase in both grades of petrol, diesel and illuminating paraffin in March, TimesLIVE reported.
The latest figures showed increases of R1.20 per litre for 95 unleaded, R1.15 per litre for 93 unleaded, R1.18 per litre for dies3l, and 63cents for illuminating paraffin. This will push inland petrol prices close to the R25 per litre mark.
The AA said the expected increase will create more financial woes for South Africans as they scramble to absorb the expected increases.
“The main driver behind the increases is higher international product prices in addition to the higher average rand/US dollar exchange rate. While the weaker rand is contributing a small margin to the under-recovery and increase to prices expected next month, the overall picture looks bleak and consumers will feel the pinch,” said the AA.
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According to The Citizen, The AA were happy with the decision by Finance Minister, Enoch Godongwana’s decision not to increase the fuel levies, noting that the savings are not much, but will alleviate some pressure.
“These levies are traditionally increased in February and implemented in April, but the Minister of Finance heeded calls by the AA [and] indicated that this will not happen again this year and we again welcome his decision not to increase these rates for 2024.” the AA said.
The Department of Mineral Resources and Energy is expected to make the official announcement on Tuesday 5 March, with the price changes taking effect on Wednesday 6 March.
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Compiled by Matthew Petersen
