Automobile Association: ‘Fuel price shocks still in store for South Africans’

Automobile Association: ‘Fuel price shocks still in store for South Africans’

The Automobile Association (AA) says it welcomes the R1,50 reduction on the General Fuel Levy, but it won’t be nearly enough to protect motorists from the economic burden spurred by the latest fuel increase.

Mineral Resources and Energy Minister Gwede Mantashe announced on Monday, 4 April 2022, that prices on all grades and categories of petrol, illuminated paraffin and retail gas will cost more from Wednesday.

The prices of diesel will increase by between R1.52 and R1.68 per litre while illuminating paraffin will go up by R2.66 per litre. The Energy Department has attributed the latest fuel hikes to the oil price having increased to over 109 dollars. Other factors include the strengthening of the Rand against the Dollar on average, movements in the price of refined petroleum products and a global shortage of diesel.

“The R1.50 decrease to the GFL will mean this tax now stands at R2.44/l, down from its current R3.94/l. This levy will change for April and May only. However, the price of all fuels is still increasing across the board and could have been worse were it not for the reduction in the GFL,” said AA spokesperson Layton Beard.

AUTOMOBILE ASSOCIATION ON THE FUEL HIKE

The Automobile Association (AA) says it appreciates that there is no quick-fix solution to mitigating the rising fuel costs, which have quite the impact on the already overburdened consumer. The AA has lauded government’s move to introduce the reduction on the General Fuel Levy.

“The intervention to cut the GFL is significant as it shows government is taking the issue of rising fuel costs seriously, which is to be welcomed. It also has indicated that it is looking at several proposals to deal with rising fuel costs into the future.”

“Whatever plans government is considering, though, these should be fast-tracked as the trend of increasing fuel prices is likely to continue in the short- to mid-term, especially as the situation in the Ukraine remains unresolved which is adding pressure to the international petroleum product price, and, in turn, to local prices. Our concern, as always, is the impact of all of this on consumers and for that reason a sustainable, long-term solution should be found sooner rather than later,”

AA Spokesperson Layton Beard

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