The country is set to face a substantial upward shift in fuel prices come March 2024, adding to the financial strain already burdening consumers across the nation.
In response to the mid-month fuel data release by the Central Energy Fund (CEF), the Automobile Association (AA) has highlighted projections indicating a steep climb in fuel prices, nearing the R24/litre mark for both grades of petrol—a figure ominously close to last year’s record high of R25/litre.
The AA has detailed the anticipated increases based on the current data: 95 octane petrol is expected to rise by R1.35/l, 93 octane by R1.31/l, diesel by a range of R1.43/l to R1.59/l, and illuminating paraffin by 96c/l.
Acknowledging the significant role of international product prices in the impending fuel price surge, the AA also noted the marginal impact of movements in the Rand/US Dollar exchange rate on the under-recovery of 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 and Energy (DMRE) to mitigate against rising costs, especially for diesel as higher input costs will be recovered through higher prices at the till,” said the AA.
Furthermore, the AA urged the Minister of Finance to refrain from increasing the General Fuel and Road Accident Fund levies during the Budget Speech scheduled for 21 February 2024. “Any relief – even in the form of non-increases – would be welcome to a consumer base already reeling from economic hardship,” concluded the AA.
The looming prospect of heightened fuel prices underscores the ongoing economic challenges faced by South African consumers, prompting calls for proactive measures to alleviate the strain.
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