petrol fuel price

We’re FIVE days away from the next fuel price increase – and it could have been worse for motorists. Image: PixabayImage via Pixabay

Fuel price hike pain at the pumps, but it could be much worse

March fuel price hike: Instead of going nowhere slowly on fumes, motorists might actually be able to drive around the block and save on food.

petrol fuel price

We’re FIVE days away from the next fuel price increase – and it could have been worse for motorists. Image: PixabayImage via Pixabay

The latest data from the Central Energy Fund (CEF) shows that South African motorists can expect yet another steep increase in the fuel price form 1 March. Petrol prices are more than likely to increase by between R1.22 and R1.27 a litre. Diesel will also see prices climb, but at a lower 26 cents per litre.

According to BusinessTech, the cost of international products (impacted by the oil price), as well as a weaker rand vs the dollar are contributing to the big hike. Product prices for diesel are actually contributing to an over-recovery for diesel, but the weaker rand is reversing any gains.

Here’s how much could fuel price could increase in March

The Department of Mineral Resources and Energy is expected to announce the official changes in the coming days, before they take effect on Wednesday 1 March 2023.

Take a look at the expected changes:

  • Petrol 93: increase of 127 cents a litre;
  • Petrol 95: increase of 122 cents a litre;
  • Diesel 0.05%: increase 26 cents a litre;
  • Diesel 0.005%: increase of 26 cents a litre;
  • Illuminating paraffin: increase of 13 cents a litre.

Thank Godongwana for small mercies

social grants increase
Finance Minister Enoch Godongwana. Image: Twitter/@GovernmentZA.

Believe it or not…but the pain at the pumps could have been worse for already financially stretched South Africans. Let’s thank Finance Minister Enoch Godongwana for small mercies.

In his Budget Speech on Wednesday 22 February, the minister announced that National Treasury will not increase the General Fuel Levy and Road Accident Fund (RAF) levy for 2023.

The General Fuel Levy is currently pegged at R3.94 per litre, and the RAF levy is at R2.18 per litre of 95 petrol (inland pricing). Combined, they add R6.12 to every litre of petrol and diesel sold in the country, as per BusinessTech.

Diesel fuel levy refund

In his Budget Speech, Godongwana also announced government will extend a diesel fuel levy refund to food manufacturers for a period of two years. This will be effective from 1 April 2023, to 31 March 2025.

“To ease the impact of the electricity crisis on food prices, the refund on the Road Accident Fund levy for diesel used in the manufacturing process, such as for generators, will be extended to manufacturers of foodstuffs. This takes effect from 1 April 2023 for two years.”

ALSO READ: Dark reality? Brace for Stage 8 load shedding

Who benefits from refund system?

Engineering News previously reported that a diesel refund system was also put into place in 2000 by the government to provide full or partial relief from the General Fuel Levy and the RAF levy to primary sectors, such as farming, forestry, fishing and mining.

However, in light of the ongoing load shedding crisis, a similar refund on the RAF levy for diesel used in the manufacturing process, such as for generators, has been extended to the manufacturers of foodstuffs.

Cosatu calls for cut in fuel taxes

At the beginning of February 2023,  the Congress of South African Trade Unions (Cosatu) however called on the government to cut fuel levies.

BusinessTech reported at the time that the trade union federation said that higher fuel prices hurt all South Africans, mainly the poor.

“While there is little that government can be done about the international oil price volatility, it can, as it did in 2022, provide relief to commuters and the economy by lowering our fuel taxes.”

ALSO READ: Rising food prices: Index shows increase in cost of core foods