Johannesburg - Following earlier fuel price predictions by an independent fuel company recently, the Central Energy Fund has released official mid-month fuel price data and it’s not a pretty picture for motorists and commuters.
The average under-recovery for the month so far points to petrol price increases of R1.25 per litre for 95 Unleaded and R1.24 per litre for 93 Unleaded, while 50ppm and 500ppm diesel are looking set for respective increases of R1.32 and R1.29.
Keep in mind, however, that the data is based on price movements that took place between the beginning of the month and 17 February. The exact increase amount could still change between now and the end of February, particularly with oil prices having softened in recent days, although it seems inevitable that the hikes will still exceed R1.
If petrol goes up by R1.25 a litre in March, motorists will pay R20.67 for a litre of 95 Unleaded at the coast and a whopping R21.39 inland, where 93 ULP will rise to R21.14.
Although the steep increases are due to rapidly rising international oil prices, with Brent Crude trading at R92 per barrel at the time of writing, it has put a spotlight on the steep South African fuel taxes, which cause us to pay more than those in our neighbouring countries to whom we supply fuel.
The Automobile Association has urged the Minister of Finance to avoid increasing the fuel levies at next week’s Budget Speech, and has also called for a review of the fuel pricing structure.
Fuel taxes currently amount to R6.11 per litre.
“Our economy is closely linked to the fuel price; it is a major input cost in the manufacturing, retailing and agricultural sectors. We have noted before that a review of the current structure of the fuel price, as well as an audit of all the elements which comprise the fuel price, should be done sooner rather than later,” the AA said.
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