CAPE TOWN - While the R1.50 reduction in the General Fuel Levy (GFL) will take some pressure off embattled consumers, the fuel price increases for April announced by the Department of Mineral Resources and Energy (DMRE) yesterday will still keep fuel prices at record high levels and will add financial pressure on all South Africans.
The Automobile Association (AA) said it noted that 93 octane petrol will increase by 28c a litre and 95 octane by 36c/l, while diesel is set for staggering increases, climbing by between R1.52/l and R1.69/l/.
The wholesale price of illuminating paraffin is set for the steepest increase – set to increase by R2.66/l.
“The R1.50 decrease to the GFL will mean this tax now stands at R2.44/l, down from its current R3.94/l,” said the AA.
“This levy will change for April and May only. However, the price of all fuels is still increasing across the board and could have been worse were it not for the reduction in the GFL.”
The recent strong run of the rand against the US dollar contributed to shaving some of the increase off the final adjustment for April, without which the increases would have been more significant.
“Given these increases, 95ULP will now cost R21.96/l in Gauteng and R21.24 at the coast.
“The price cap for diesel in Gauteng is now set at R21.01/l and R20.39 at the coast.
“And, as the country heads closer to winter, illuminating paraffin will now cost R15.84/l in Gauteng and R15.02 at the coast, dealing yet another blow to poorest of the poor who use this fuel for heating, cooking, and lighting.
“These are record fuel prices across the board and while the government’s intervention has cushioned the blow somewhat, it hasn’t entirely taken the pain away,” said the AA.
“The intervention to cut the GFL is significant as it shows the government is taking the issue of rising fuel costs seriously, which is to be welcomed.
“It has also indicated that it is looking at several proposals to deal with rising fuel costs into the future.
“Whatever plans the government is considering, though, these should be fast-tracked as the trend of increasing fuel prices is likely to continue in the short- to mid-term, especially as the situation in the Ukraine remains unresolved.
“This is adding pressure to the international petroleum product price, and, in turn, to local prices. Our concern, as always, is the impact of all of this on consumers and for that reason a sustainable, long-term solution should be found sooner rather than later.”
Cape Times