Sharp fuel price hikes will hurt all South Africans: AA
The Automobile Association (AA) warns the massive increase in fuel prices will have an immediate impact on South Africans' pockets.
The Department of Mineral Resources and Energy announced the sharp fuel hikes on Saturday.
Both grades of petrol will increase by R1.46 per litre, diesel will increase between R1.44 per litre and R1.48 per litre and illuminating paraffin will increase by R1.21 per litre.
"The increases are above expectations and will hurt all South Africans," says AA spokesperson Layton Beard.
"For the first time in history 95 octane petrol inland will rise above R21 a litre, and by a significant margin.
"As of Wednesday, this fuel will cost R21.60 per litre while at the coast it will cost R20.88 per litre, the first time it has breached the R20 per litre level.
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"Significantly, the price of illuminating paraffin will also rise to new highs.
"This fuel is used extensively in poorer communities for heating, cooking and lighting, and will be in higher demand as the country moves from a hot summer into a more moderate autumn over the next few weeks.
"These increases will certainly impact on every single South African given the reliance the country has on fuels for transportation, manufacturing and in the agricultural sector,” he adds.
The AA says the outlook for April remains unclear but and Russia’s military action in Ukraine could push international oil prices higher which will again impact locally.
"Global volatility and the unfolding Russian attacks on Ukraine, with the response from the European Commission as well as from its allies, doesn’t bode well for oil price stability," says Beard.
"For now, it’s a question of wait and see how these prices move in the next few weeks.
"One silver lining, though, is that any potential increases will not be combined with increases to fuel taxes as the Minister of Finance earlier this week announced the General Fuel and Road Accident Fund levies will not increase this year."
