The Automobile Association is expecting the cost of petrol to rise well above R20 per litre at the start of March.

The main factors influencing the monthly fuel price adjustments are the Rand-Dollar exchange rate and the price of petroleum products such as Brent Crude Oil. During the first half of February 2022, the Rand-Dollar exchange rate has remained stable and is currently around R15 to the US Dollar. The price of Brent Crude Oil, however, is surging and is currently at $93.7 per barrel.

The AA’s spokesperson Layton Beard said the data is showing an increase of R1.25 a litre for 95 octane petrol, R1.24 a litre for 93 octane, R1.29/l for diesel and a significant increase of R1.22/l for illuminating paraffin.
Beard said the AA expects the Minister of Finance to announce the increase during his budget speech on Wednesday.

“The minister of finance will make his speech on Wednesday, and we expect him to announce an increase to the fuel levy as well as the Road Accident Fund Levy as those are the two biggest levies on fuel,” he said. Although the announcement will be made on Wednesday, the increases will only be adjusted as of March 2022.

“The big issue we have is that we have asked that the levies don’t increase as it would be damaging to the economy as well as those who are already struggling with the general cost of living,”  Beard stressed.

When asked if the AA believes that government would take their recommendations not be increased, Layton says government is most likely to increase as this is one of the easiest taxes to increase, however the AA will not rest until they are taken seriously.

“We write to government annually requesting fuel levies to remain the same, but this is one of the easiest taxes to collect and government will extract as much as they can because obviously the country could do with the funds to boost the economy, but the more the levies increase, the more pressure gets placed on consumers because once petrol increases, everything follows,” he added.

VOC