Fuel Prices Anticipated to Rise in April 2018
The past few months have been relatively positive for South African’s at the fuel pumps after the significant decreases in prices, yet according to an un-audited fuel price data released by the Central Energy Fund, this is all set to change in April 2018 once levy increases are finalized and implemented.
The Automobile Association of South Africa, more commonly known as the AA, reported that the price of fuels in South Africa will be increasing by staggering 52 cents per litre next month.
A brief look at the economy reveals an almost negligible weakening of the rand to the dollar by 2-cents, and the international oil price achieving an actual decrease in cost over the same time period. According to these changes, one would assume that fuel prices should decrease.
Unfortunately, South African’s will be affected by the other side of the coin which sees petrol prices increasing by 40 cents per litre and diesel by 34 cents per litre through the imminent increase of fuel levies.
Ex-Minister of Finance for South Africa, Malusi Gigaba, announced the increases in his budget speech last month. According to Gigaba, the General Fuel Levy will see an increase of 22 cents per litre from R3.15 to R3.37. The Road Accident Fund, or RAF, levy will also see an increase, rising by 30 cents per litre from R1.63 to R1.93. These increases represent a 7% and 18% increase respectively.
The AA believes that the increases will affect the poorest individuals in our country the worst. “The increases are way above inflation and will have a knock-on effect on other prices, including public transport. The poor, who are already under enormous financial strain, will bear the brunt of these increases, which come at the same time VAT is increasing to 15%. These increases will, unfortunately, result in a heavier burden for the very people who need relief the most” says the AA.
