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AA warns motorists to brace for more fuel price pain in March

February 16, 2024
in News
AA warns motorists to brace for more fuel price pain in March
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South Africans can expect a major increase in fuel prices in March, delivering yet another blow to already embattled consumers.

Commenting on mid-month fuel data released by the Central Energy Fund (CEF), the Automobile Association (AA) notes the data is projecting fuel prices to exceed R24/litre for both grades of petrol, edging close to the R25/l record high seen last year.

Based on the data, 95 octane petrol is set to increase by R1.35/l, 93 octane by R1.31/l, diesel by between R1.43/l and R1.59/l and illuminating paraffin by 96c/l.

International product prices are playing a significant role in the expected increases while movement in the rand/US dollar exchange rate is contributing marginally to the under-recovery of the basic fuel prices.

“We remain concerned about these expected increases which will undoubtedly put more pressure on already stretched consumers. These hefty increases also reaffirm our belief that a review of the fuel price is necessary to establish if any components within the current pricing model can be revised by the department of mineral resources & energy to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till,” the AA said.

“We again call on the minister of finance to strongly consider not increasing the General Fuel and Road Accident Fund levies in his budget speech on February 21. Any relief — even in the form of non-increases — would be welcome to a consumer base already reeling from economic hardship.”

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