This was according to the Automobile Association of SA (AASA), that said the anticipated drop in basic fuel prices were as a result of slightly lower international crude oil prices in combination with a relatively flat rand/US dollar exchange rate during March 2018.
“However, despite the predicted decrease in the basic price of fuel, the additional 52c added to the fuel levies will push the overall price of fuel at the pumps up in April 2018,” the AASA said in a statement.
During his 2018/19 national budget speech, SA’s former minister of finance, Malusi Gigaba, announced that as of 1 April the general fuel levy would increase by 22c to R3,37/ ℓ and the Road Accident Fund Levy by 30c to R1,93/ ℓ.
AASA explained that while basic fuel prices in April 2018 were anticipated to decline by approximately 12c/ ℓ for petrol, 18c/ ℓ for diesel and 13c/ ℓ for paraffin, the increased fuel levies would push next month’s pump prices above those of March 2018.
The AASA said the increases to the fuel price levies were concerning.
“The increases are way above inflation, and will have a knock-on effect on other prices, including public transport.
The poor, who are already under enormous financial strain, will bear the brunt of these increases, which come at the same time VAT is increasing to 15%,” the AASA statement said.
Wandile Sihlobo, Agbiz’s head of economic and agribusiness intelligence, said SA’s April 2018 fuel price increases would arrive at a relatively quiet period in the country’s agricultural sector.
Field activities would only pick up again in about two months when summer crops harvesting and winter crops planting began.
“Be this as it may, this increase in fuel prices will add pressure on farmers’ financials, particularly if coming months resemble a similar trend in fuel prices or even if fuel prices are sustained at the expected higher levels,” he said.
