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- It will cost you at least R962 to fill up an average 45-litre petrol tank come Wednesday, 2 March 2022.
- Illuminating paraffin users might be paying 56% more than they used to pay for it just a year ago.
- AA calls for a review of the fuel price and says that the government should not increase the General Fuel Levy and Road Accident Fund Levy.
- For motoring news, go to Wheels24
For the first time, South Africans will pay more than R21 per litre of fuel when it comes time to brim petrol and diesel tanks next month. According to the Automobile Association (AA), a substantial fuel hike well above R1/litre is on the cards for all fuel grades going into March.
The AA on fuel price data released today by the Central Energy Fund (CEF): "The data is showing an increase of R1.25 a litre for 95 octane petrol, R1.24 a litre for 93 octane, R1.29 a litre for diesel and a significant increase of R1.22 a litre for illuminating paraffin."
An analysis of the movement in fuel prices so far in February shows rising international petroleum costs contributing entirely to the expected fuel price increases in SA, with the stronger Rand buffering what would have been a more significant hike.
"The Rand is currently trading in a more positive band than it has for some weeks, with the local currency shaving around 17 cents off oil's negative movement. Without this, the expected increases could have been between R1.40/l and R1.47/l for fuels across the board," the AA notes.
Consumers will be economically stretched
Seen year-on-year, the latest fuel price increases forecast by the CEF show substantial percentage jumps from March 2021. The price of 95 octane petrol inland, for instance, could rise from R16.32 a year ago to R21.39 in March 2022, a 31% increase.
The cost of diesel could rise from R14.12 in March 2021 to R19.33 in 2022 – a 37% hike.
The most significant leap is in illuminating paraffin – a fuel used by many for heating, cooking, and lighting. In March 2021, the cost of this fuel stood at R8.45 a litre. Considering the expected increase of R1.22 a litre, the price in March 2022 could reach R13.19 a litre (off its current price of R11.97/l), representing a whopping 56% increase year-on-year.
Read: SEE | 4 new fuel-saving self-shifter vehicles you could buy in SA for less than R300 000
Although the expected increases are significant, Efficient Group chief economist Dawie Roodt notes they align with current economic data: "These increases aren't unexpected, and they are supported by the numbers, especially those related to international oil prices. Naturally, we are concerned about these expected increases, undoubtedly putting more pressure on already stretched consumers. These hefty increases also reaffirm our belief that a fuel price review is necessary to establish if any components within the current pricing model can be revised to mitigate against rising costs."
Meanwhile, the AA says: "In addition, we again call on the Minister of Finance to strongly consider calls not to increase the General Fuel and Road Accident Fund levies in his Budget Speech next week. Any relief – even in the form of non-increases – would be welcome to a consumer base already reeling from economic hardship."
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