Petrol and diesel prices are expected to rise in March, according to the latest data released by the Central Energy Fund.
The unaudited data indicates a petrol price increase of about 18 cents, while diesel appears set to rise by between 60 cents (500ppm) and 62 cents a litre (c/l).
The forecast price increase comes on the back of higher international product prices during February. The stronger rand has ameliorated price inflation, which otherwise would have led to an estimated 35c/l hike in the price of petrol and an 80c/l increase in the price of diesel.
Finance Minister Enoch Godongwana’s announcement of increases to the General Fuel Levy (GFL) and the Road Accident Fund Levy (RAF) will also affect fuel prices in the coming months.
The GFL will increase by 9c/l for petrol and 8c/l for diesel, while the carbon fuel levy goes up by 5c/l and 6c/l for petrol and diesel respectively, and RAF contributions will increase by 7c/l. The increases come into effect on April 1.
Bobby Ramagwede, CEO of the Automobile Association, told IOL that the increase of these the levies would add pressure on motorists.
“The Minister had an opportunity to provide much-needed relief to consumers in an effort to promote economic activity by making mobility more affordable. Whilst the inflationary adjustment to taxes may be justified, the prevailing inefficiencies of RAF won’t be remedied by ‘throwing more money’ at the problem,” he said.
The Organisation Undoing Tax Abuse (OUTA) said it was concerned about the ongoing increases in the RAF levy.
“The annual fuel levy for the RAF contributes over R45 billion per annum, which falls well below the long-term provisions for the fund at R387.4bn, and is expected to increase to R426.2bn by 2028/29,” said OUTA CEO, Wayne Duvenage.
“Increasing the levy by a further R1.5bn per annum, without fixing the structural failures of the RAF, simply shifts the burden to motorists while liabilities continue to grow,” he told IOL.
He said motorists were paying more into a system that was fundamentally broken.
The forecasts are based on unaudited data and are projected estimates only. Final price adjustments will be announced by the Department of Mineral and Petroleum Resources early next week.
