The Automobile Association (AA) is predicting the price of petrol to increase to R24 a litre, and diesel to R 23, 60c a litre in April.
The organisation says the main driver behind the increases is the movement in international oil prices which have soared to record levels in recent weeks due to the conflict in Ukraine and concerns over Russian oil supplies.
The fuel hikes are expected to have a serious knock-on effect on already struggling consumers.
The Automobile Association’s Layton Beard says, “If realised month end this will be biggest increases to fuel price in South Africa’s history and will undoubtedly have major ramifications for consumers and the economy in general.”
Beard says, “ You must note though that this is the mid-month outlook and oil prices are for the moment see-sawing significantly. So, they may yet be some relief before the official adjustment by the DME is made going into April.”
Fuel levies
Economist Kulani Siweya says a number of sectors would welcome a possible move by the government to suspend fuel levies amid increases in international oil prices.
In a Parliament briefing, Energy Minister Gwede Mantashe announced that South Africa must find ways of minimising the impact of rising fuel prices on the economy.
In the video below, economists expressed concern as International oil prices rose above 130 dollars a barrel earlier this week:
Fuel price methodology
The Motor Industry Staff Association, a registered trade union for employees in the retail motor industry, has asked the government to include it when reviewing the fuel pricing methodology in South Africa.
The organisation says it is concerned about the increasing price of petrol and wants clarity.
Spokesperson Sonja Carstens says the fuel price hikes are affecting their members:
