Commenting on unaudited data released by the Central Energy Fund on Wednesday, the AA said that international oil price had increased sharply since March 12th, and that it expects the price of petrol to go up by 63 cents a litre and diesel by 57 cents come April 4th.
It also stated that an increase would have taken place even without the fuel levy hike announced by former Finance Minister Malusi Gigaba during his Budget Speech in February, and that 40% (R5.30) of the fuel price would now be made up of taxes.
“An increase of 63 cents a litre to fuel means users will be paying around R14.17 for 93 unleaded octane inland, and R13.76 at the coast. Public transport providers such as taxis and busses will have to cover these increases by passing them directly to consumers, which means more of their already small wage packet goes to transport costs,” the AA said.
The increases would also result in fuel being close to December’s peak of R14.49 for a litre of 93 unleaded and R14.76 for 95 inland, with the association remarking, “any further increases to international petroleum prices in the near future could mean local prices quickly surpass these highs”.
It however express hope that Moody’s decision to change the country’s credit rating to stable would bring relief in terms of the economy, adding, “we are hopeful increased political and economic stability will spill over into a more stable outlook for fuel prices”.
Earlier today (15h40), the Rand was trading at R11.73 to the US Dollar with Brent Crude Oil at $68.91 a barrel.