Fuel price hike will be bigger than anticipated

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The petrol price increase is expected to shock South Africans, with a hefty hike eclipsing original estimates. The pain starts in March, with late month data from the Department of Energy pointing towards a bigger fuel price increase than originally anticipated.

According to the Energy Department, recent data, impacted by rising oil prices and a weakened currency, shows that South Africans could expect to be hit even harder at the pump in March – with an estimated increase of between 67 cents and 83 cents, per litre, for petroleum. The price of diesel is also expected to soar – way higher than previously thought – to between 84 cents and 96 cents per litre.

The Minister of finance, Tito Mboweni, in his budget speech announced further taxes on fuel as well as an increase in the general fuel levy and Road Accident Fund contribution, which will add 20 cents per litre to the fuel price from the start of April.

There will probably be little price relief after that, with a carbon tax kicking in in June, adding 9 and 10 cents to petrol and diesel, respectively.