The proposed 80.5c/litre increase in the fuel price levies from April 1, combined with the expected 90c/litre price increase in March, is concerning, Absa said on Wednesday.
“The lowering fuel price that consumers have been enjoying over the past few weeks will soon be largely negated,” said Absa wealth and investments marketer and analyst Chris Gilmour in a statement.
“Consumers will see an overall fuel increase of 80.5 cents by 1 April, combined with an anticipated increase of around 90 cents per litre in March due to under-recovery of the fuel price.”
Earlier on Wednesday, presenting his first main budget as finance minister in the National Assembly, Nhlanhla Nene announced the general fuel levy would increase by 30.5c/litre and the Road Accident Fund levy by 50c/litre, effective from April 1.
Last week, Paul Joubert, senior economic researcher at the Solidarity Research, warned that the price of petrol may rise by as much as R1 per litre next month (4 March), while the wholesale price of diesel may go up by 80 cents.
South Africa has experienced seven straight months of fuel cuts. In the first week of February, the price of all grades of petrol dropped by 93 cents a litre, while in January the price of 93 and 95 octane petrol decreased by R1.27 and R1.23 a litre.
The current price for a litre of 95 Octane petrol in Gauteng is R10.31.
According to the latest data (24 February) from the Central Energy Fund, the fuel price is showing the following under-recovery:
- 93 Octane petrol – 88 cents
- 95 Octane petrol – 92 cents
- Diesel 0.05% – 72 cents
- Diesel 0.005% – 72 cents
- Illuminating paraffin – 71 cents