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- Petrol looks set for a hike of almost R1.20 in the first week of April.
- The price of Gauteng 95 unleaded petrol looks set to reach R17.48 – 25% more than a year ago.
- Some 35% of the fuel price will go towards tax.
- For more articles, go to www.BusinessInsider.co.za.
South African fuel prices look set for a monster hike in the first week of April, which could mean that the petrol price increased by 25% in a single year.
The latest Central Energy Fund estimate indicates a 90c increase in the price of a litre of 95 unleaded petrol. This was largely due to the Brent oil price climbing to its highest level since 2019, and moving closer to $70 a barrel.
Together with a 26c increase in the General Fuel and Road Accident Fund levies, which come into effect in April, this means petrol may be hiked by R1.16 a litre and diesel by 92c a litre, according to the Automobile Association of SA.
According to the AA’s calculations, the price of 95 unleaded fuel in Gauteng will therefore reach R17.48 – a record level, and 25% higher than the petrol price in April 2020. Petrol then sold for R13.96 a litre, as fuel demand collapsed during the first part of the hard lockdown.
The last time 95 unleaded in Gauteng was above R17 was in October and November 2018, when Brent crude was trading at $84 a barrel. Ten years ago, petrol cost less than R10 a litre.
Some R6.10 of the petrol price in April will go towards the General Fuel and Road Accident Fund levies, which means at least 35% of the petrol price is made up of tax.
The price of diesel is expected to increase to R15.04 in April – of which R5.96, or 40%, will go towards tax. Diesel was almost 20% cheaper in April last year. But it is still only 1% higher than two years ago – in April 2019, a litre of diesel cost R14.87.