AA forecasts record high fuel price hike for March exceeding R1 per litre
Motorists have been warned to brace themselves for another blow to their already bruised wallets.
The Automobile Association warns in a statement massive fuel hikes, above R1 per litre, are predicted for all grades of fuel in March.
According to the latest data from the Central Energy Fund, the AA forecast, petrol prices would soar above R21 for the first time.
The price of 95 octane petrol inland would rise to R21.39 – that is a 31% increase.
While the cost of diesel could rise to R19.33 in 2022, a 37% hike.
The coastal price of 95 octane would cost R20.67 per litre.
However, the biggest gut punch was anticipated for paraffin, a fuel used by many for heating, cooking and lighting.
In March 2021, paraffin stood at R8.45 per litre while in March 2022 it could reach R13.19 per litre, representing a staggering 56% increase year-on-year.
The AA says international petrol prices are mostly to blame for the recent increases.
Explainer: Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy. The Department is the only entity which regulates, sets, and adjusts fuel prices in South Africa.
PARAFIN IS THE BIGGEST CASUALTY
The biggest gut-punch was anticipated for paraffin, a fuel used by many for heating, cooking and lighting.
In March 2021, paraffin stood at R8.45 per litre while in March 2022 it could reach R13.19 per litre, representing a staggering 56% increase year-on-year.
REVIEW OF FUEL PRICES
Although the expected increases were significant, economist Dawie Roodt affirmed that they were in line with current economic data.
“These increases aren’t unexpected, and they are supported by the numbers, especially those related to international oil prices,” he said.
The organisation said increases would put further pressure on already stretched South Africans, repeating the call for a review of fuel prices.
“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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The film follows the first season of Wu Assassins Netflix series, which sadly was not renewed for a second season. Pearl Thusi – who previously helmed Africa’s first original Netflix series Queen Sono – plays the role of Zama, a feisty street fighter. Learn More
