Fuel set to be more expensive in February -AA

Fuel set to be more expensive in February -AA

The Automobile Association (AA) has called on the Finance Minister Enock Godongwana to repeat last year’s decision not to increase fuel levies when he tables his budget in February.

There will be an expected price in fuel to increase come June first week
Image: iStock

“Fuel prices across the board are likely to increase in February,” the AA said on Thursday.

The AA was commenting on unaudited data from the Central Energy Fund (CEF).

In a statement on Thursday, the association warned that both grades of petrol and diesel, and illuminating paraffin, will be more expensive next month.

It said the price hikes will only add to the financial strain on cash-strapped South Africans.

“The latest data shows an increase of around 44 cents a litre for 95 ULP petrol and an increase of around 50 cents a litre for ULP 93 petrol and increases of between 14 cents a litre and 25 cents a litre for diesel. The price of illuminating paraffin will climb by around 30 cents a litre.

“The data is showing that price increases to international petroleum products are the main driver behind this expected increase to local fuel prices, while the strength of the rand against the US dollar is limiting these increases by between 11 cents and 14 cents on all fuels.”

The association added that any fuel increase will have a negative impact to South Africans, with the electricity tariff expected to come to effect in April.

“In addition to these increases, the AA notes that the minister of finance will be delivering his budget speech in Parliament in mid-February. Although he announces any possible adjustments in February, the actual adjustments only come into effect in April, while proposed electricity price adjustments are implemented.

“Consumers can simply not afford any more price shocks and considering the impending 18.65% increase to electricity rates, an increase to the levies will deal a massive blow to personal finances.”


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