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Fuel price levy hike to erode projected April decline

15.03.2018

The Automobile Association (AA) has indicated that while an expected fuel price decrease is on the cards for April, the respective gains is likely to be wiped out by the 52 cents hike in the fuel price levy.

Commenting on unaudited data released by the Central Energy Fund on Thursday, the AA said that a stable Rand and lower international oil price would result in a drop of 12 cents a litre for petrol, 18 cents for diesel and 13 cents for illuminating paraffin, but that all would be offset by the levy hike.

"Even though there’s a decrease of 12 cents a litre to the basic price of petrol, the overall price will jump 40 cents in April because of the increases to the General Fuel and Road Accident Fund levies announced by former Finance Minister Malusi Gigaba in his Budget Speech in February," the AA remarked.

"A litre of unleaded 93 octane fuel inland currently costs R13.54. With a predicted basic fuel price decrease of 12 cents (in April), this will move down to R13.42. But, the overall price of a litre will increase to R13.94 with the additional 52 cents a litre on the levies".

It also stated that the levy upshot would be hardest felt by the poorest of the poor relying on public transport, compounded by the one percent VAT increase in April as announced by Gigaba.

By mid-day, the national currency was trading at R11.85 to the US Dollar with Brent Crude Oil at $64.75 a barrel.

Article written by Autodealer
15.03.2018
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