Fuel price increases on the way
Fuel prices across the board are set to increase in February says the Automobile Association (AA). Commenting on unaudited data from the Central Energy Fund (CEF), the AA says petrol, diesel, and illuminating paraffin will be more expensive next month, again adding financial strain on already cash-strapped South Africans.
The latest data is showing an increase of around 52 cents a litre for 95 ULP petrol and an increase of around 57c/l for ULP93 petrol and increases of between 22c/l and 33c/l for diesel. The price of illuminating paraffin will climb by around 38c/l.
“The data is showing that price increases to international petroleum products are the main driver behind this expected increase to local fuel prices, while the strength of the Rand against the US Dollar is limiting these increases by between 10 cents and 14 cents on all fuels. Any increases to fuel prices now, at a time when South Africans are grappling with, among other issues, financial pressures and rolling blackouts is unwelcome. We again want to urge the government to revisit the fuel pricing structure with a view to finding ways to mitigate against this and other possible increases in future,” notes the AA.
In addition to these increases, the AA notes that the Minister of Finance will be delivering his Budget Speech in Parliament in mid-February. Although he announces any possible adjustments in February, the actual adjustments only come into effect in April, at the same time that proposed electricity price adjustments are implemented.
“Last year the Minister heeded calls by the AA not to increase the two main levies attached to the petrol and diesel prices: the General Fuel Levy and the Road Accident Fund levy. We again urge the Minister to follow this same route when he delivers his Budget Speech this year and to consider the implications of increasing these taxes on all South Africans. Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances,” says the AA.
The Association calls on the Minister to consider the consequences of all increases, and the impact these will have on the prices of goods and services.
“Consumers continue to be extremely embattled and increases to the two fuel levies will be counter-productive, are ill-timed, and have disastrous outcomes for millions of people already struggling to make ends meet,” concludes the AA.
