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Brace For A Double-Whammy April Fuel Price Increase!

Author: Jason Snyman
Date: 2019-03-17
We're still licking our March wounds, but we can already expect another massive fuel price increase in April. Of course, this is no ordinary increase either - it's a double blow for SA motorists - because the general fuel and RAF levies are coming into effect as well. Ouch.

South Africans have barely begun to nurse their wounds after the significant fuel price increases last month. The March trauma is still fresh, still throbbing away, and now it’s time for another hefty double-whammy of a hike.

Hit ‘em while they’re trying to catch their breath – seems to be the order of the day. 

We recently reported on the incoming Carbon Tax – effective from June 2019 – which will lead to an increase in the fuel prices. In the same article, we also spoke about the increases to the general fuel and Road Accident Fund levies – effective from April 2019 – which also have a substantial impact on the fuel price. 

Now, the Automobile Association, commenting on unaudited mid-month fuel price data released by the Central Energy Fund, has said that we can expect quite a considerable run-of-the-mill fuel price increase as well. As always, this is largely due to movements in the exchange rate (showing the Rand to be quite pathetic, as is customary these days) and international oil prices. 

Let’s take a look at what we’re up against, come next month. 

How Much Will We Be Paying For Fuel, And Why?

The Automobile Association has speculated – based on the CEF data – that the basic fuel price increases are expected to be around 98c per litre of petrol, 70c for diesel and 63c for illuminating paraffin. 

With the addition of the general fuel and RAF levies, we could be looking at increases of around R1.18 per litre of petrol and 90c per litre of diesel.

Thankfully, there are no levies added to illuminating paraffin. Not yet, anyway, but the ANC is working on it. Stay tuned for more on that.

With this forthcoming increase taken into account, taxes and levies will account for around 38% of the cost per litre of 93-octane unleaded petrol. 38% of every litre you pay for goes to the government, which continues to use the fuel levy as an easy source of income, year after year.

Levies increase, new taxes are added, the cost of licence disc renewals and applications have gone up, toll fees just saw a 5% increase, and if the on-going Zondo inquiry into State Capture has proven anything, it’s that South Africans really need to start asking where all this money is going, what it’s being used for, and can we please see the receipts?

When fuel taxes were proposed as a roads-funding mechanism, the government resisted, claiming they were anti-poor. But the fuel levy has nonetheless risen by nearly 22% over the past three years.
Here is what you can expect to pay at the pumps from April:

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