South Africa hasn’t achieved its policy objective of deregulating the fuel price because vested interests have opposed this, and the government doesn’t have the political will to implement the policy.
The Automobile Association (AA) says it expects a further hefty hike in fuel prices in April with 95 ULP heading into record territory when the Department of Mineral Resources and Energy makes the official adjustment next Wednesday. The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
The additional 27 cents to the General Fuel Levy and Road Accident Fund levies announced by Finance Minister Tito Mboweni in February come into effect in April and will add extra costs to every litre of fuel purchased, in addition to the increased monthly adjustment.
According to the latest data, petrol is set for a massive increase of 73c/litre, diesel an increase of 39c, and illuminating paraffin an increase of 37c. With the increase to the levies factored in, petrol could rise by as much as R1/litre, and diesel by 66c/litre. The levies are not added to the cost of illuminating paraffin.