South Africans are bracing themselves for a significant fuel price increase, with estimates suggesting a rise of between R5.53 and R11.63 per litre on Wednesday, 1 April. The underrecoveries per litre, which indicate how much motorists have underpaid for fuel over the past month, are a result of the depreciation of the rand and fuel price increases. The rand has weakened to over R17 per dollar, largely due to the US-Israel attacks on Iran on 28 February, which have led to a Middle East conflict and subsequent throttling of fuel supplies.
The annual increases in fuel levies and taxes, announced by Minister of Finance Enoch Godongwana in February’s Budget, will also come into effect in April. This includes a collective increase of 21c per litre for the general fuel levy, the Road Accident Fund levy, and the carbon tax. According to the National Treasury, these levies are aimed at promoting sustainable transportation and reducing the country’s carbon footprint.
Fuel Price Projections
The projected fuel price increases are as follows: petrol is expected to rise by R5.53 per litre, while diesel is expected to increase by R11.63 per litre. Paraffin prices are also expected to almost double, which will have a significant impact on low-income households that rely on it for heating and cooking. The underrecovery on gas is not indicated in the Central Energy Fund data and remains an unknown until the final announcement of fuel price changes by the Department of Mineral and Petroleum Resources.
Impact on Motorists
Motorists are urged not to wait until Tuesday to fill up, as there are temporary fuel shortages at many fuel stations. Some fuel stations are limiting the amount of fuel people are allowed to buy, with some limiting it to a tank, others to 80 litres or 100 litres. For example, someone filling up an almost empty 50-litre tank before Wednesday will save R301.50 on petrol and R517 or R524 on diesel (0.005% sulphur being the higher amount). Motorists who use about 200 litres of petrol per month will have to budget R1,206 more for petrol in April, and those with diesel vehicles will spend about R2,068 or R2,096 more, unless they put the brakes on.
Here are some tips for motorists to save on fuel costs:
- Fill up before Wednesday to avoid the price increase
- Consider carpooling or using public transport
- Plan your routes to reduce fuel consumption
- Regularly maintain your vehicle to improve fuel efficiency
For more information on fuel prices and how to save on fuel costs, visit the South African National Roads Agency website.
