South Africa’s road freight sector is bracing for one of the largest monthly fuel price increases in history, with the latest Central Energy Fund (CEF) data pointing to steep under-recoveries that will feed directly into pump prices from April 1.
News24 reports that unless government takes action to reduce the impact, fuel prices will rise by between R5.53 and R11.63 per litre on Wednesday, according to the latest data released by the Central Energy Fund.
At the end of the four weeks used to calculate April’s changes, the under-recoveries per litre are as follows:
*95-octane petrol: R5.82
*93-octane petrol: R5.32
*Diesel with 0.05% sulphur: R10.13
*Diesel with 0.005% sulphur: R10.27
*Paraffin: R11.63
These under-recoveries have been influenced by the much higher international price of fuel and the weakened value of the rand against the dollar as the US-Middle East conflict threatens global fuel supplies.
Fuel levy increases are also expected to take effect from April 1.
Minister of Finance Enoch Godongwana announced a collective increase of 21c per litre for the general fuel levy (9c on petrol and 8c on diesel), the Road Accident Fund levy (5c on petrol and 6c on diesel) and the carbon tax (7c for both petrol and diesel).
Once these levies have been added to the under-recoveries, fuel is forecast to increase as follows:
*95-octane petrol: R6.03
*93-octane petrol: R5.53
*diesel with 0.05% sulphur: R10.34
*diesel with 0.005% sulphur: R10.48
The price of paraffin is also expected to almost double.
The announcement is expected by Tuesday at the latest, unless government changes its script with a special announcement in light of the fuel crisis.
Some fuel retailers have been restricting the amount of fuel sold to motorists, with some limiting it to a tank and others to 80 or 100 litres.
Motorists who use 200 litres of petrol per month, will have to budget R1 206 more in April, while those with diesel vehicles will spend about R2 068 or R2 096 more, News24 reports. The Department Mineral Resources and Energy will announce the fuel price adjustment by Tuesday at the latest.
