Cape Town – Minister Gwede Mantashe’s Department of Mineral Resources and Energy exceeded projections in announcing very steep fuel price increases on Thursday evening.
The Automobile Association had expected a record increase (by 73 cents per litre) – due to a 27 cents a litre increase in taxes – but the fuel price rise that takes effect from April 7 exceeds that: 93 unleaded petrol increases by 95 cents per litre and 95 unleaded petrol by 100 cents per litre, pushing the price into the territory of R17 per litre.
"The dramatic price fluctuations are attributable to a variety of events, including low US crude oil inventory figures, the expected increased economic activity in the US due to the approval of their economic stimulus and a vessel stuck in the Suez Canal causing a delay for all cargo containers including oil tankers," the Department of Mineral Resources and Energy said in a statement.
The cost of high sulphur diesel will see a 65.20 cents per litre increase, while 0.005% sulphur diesel rises by 63.20 cents per litre and wholesale illuminating paraffin by 34.80 cents per litre.
The increases include a 15 cents per litre rise in the General Fuel Levy, while the Road Accident Fund levy increases by 11 cents and the Carbon Fuel levy by 1 cent.
These levies will now total R5.96 on every litre of fuel purchased, which represents almost 40 percent of the price you pay at the pumps.
The AA had warned that the latest increases would have a dire impact on ordinary South Africans.
"We can only stress again the severe additional damage these increases will do to household budgets, both directly and indirectly as the increased transport costs ripple throughout the value chain,” the association said.
“Increased public transport fares will surely also not be far off either."
IOL