Motorists should brace themselves for a hefty increase in the price of petrol as current forecasts point towards an 80 cents per litre hike in April
Despite a relatively firmer rand-dollar exchange rate, Solidarity Research Institute Senior Researcher Paul Joubert says the substantial hike in the price of petrol is being driven by significantly higher international bulk refinery-gate prices of diesel and petrol.
Over and above international bulk prices, motorists will also have to contend with the 30 cents per litre annual fuel levy increase announced by Finance Minister Pravin Gordhan in his budget speech last month and set to come into effect on 6 April.
“If the current under-recovery on petrol remains as is until 31 March, the price of a litre of 95 octane petrol will rise by about 83 cents. Under the same circumstances, the price of 93 octane petrol will rise by about 79 cents and the wholesale price of diesel will rise by about 93 cents per litre,” Joubert was quoted saying in a Business Tech report.
The wholesale price of diesel is expected to rise by 93 cents next month.
While the price hike is certain to hit South Africans where it hurts the most – their wallets – the good news is that should 93 octane petrol increase by the expected 79 cents, it will still be around 3% lower than what you paid for petrol in April 2015, while diesel will cost around 6% less than the same period last year.
AA’s TIPS FOR SAVING PETROL
- Check your tyre pressure
- Service your car regularly
- Use high-quality fuels
- Reduce your drag
- Turn off your air-con
- Lighten your load
- Avoid stop-start driving
- Change down a gear
- Avoid excessive idling