South African motorists should brace for substantial fuel price hike in March, which will add to already stretched budgets.
According to the Automobile Association (AA), mid-month fuel data from the Central Energy Fund (CEF) indicates a looming increase, with petrol prices nearing the R24/l mark for both 95 and 93 octane grades.
This surge would bring prices close to the record high of R25/l observed in 2023.
Expected hikes include a rise of R1.35/l for 95 octane petrol, R1.31/l for 93 octane, and a substantial increase of between R1.43/l and R1.59/l for diesel at wholesale prices. Illuminating paraffin is also set to climb by 96c/l.
International product prices are a major factor driving these expected increases, with slight contributions from fluctuations in the rand-dollar exchange rate affecting basic fuel prices.
The AA expressed ongoing concern regarding these anticipated hikes, highlighting the added strain they will place on consumers who are already facing financial constraints.
"These hefty increases also reaffirm our belief that a review of the fuel price is necessary to establish if any components within the current pricing model can be revised by the department of mineral resources and energy to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till.
“We again call on the minister of finance to strongly consider not increasing the general fuel and Road Accident Fund levies in his Budget Speech on February 21. Any relief — even in the form of non-increases — would be welcome to a consumer base already reeling from economic hardship,” the AA said.
Comments