The stars have aligned in the worst possible way for the motorists of Mzansi, who are facing a significant increase in diesel and petrol prices next month.
After a rosy festive period which saw petrol prices drop significantly over December and January, reality has set in for the rest of 2019. Fresh from a marginal increase for this month, it looks as if March is going to dwarf those figures when fuel hikes are officially confirmed.
Petrol prices for March 2019
Data released by the Central Energy Fund (CEF) – late on Valentine’s Day, no less – broke a few hearts when their predictions indicated that South African motorists can expect a petrol price rise of 43 cents per litre, whereas diesel is set to become 60 cents p/l more expensive.
However, the CEF has not factored in a predicted fuel tax rise for Mzansi, either. In the last five budget speeches, the number has risen by an average of 30 cents per litre. Experts are convinced Tito Mboweni will follow previous finance ministers and crank up the levy for petrol and diesel during his speech next Wednesday.
Legal and political analysts PwC addressed the media this week to talk about their forecasts for the upcoming budget speech. The firm expect both the fuel and Road Accident Fund (RAF) levy to encounter significant increases. They predict fuel tax will rise by 15 – 20 cents, whereas the RAF levy could hit the 30 cent mark.
Average fuel price predictions for March:
- Petrol 95: R14.51 (or R14.71 with fuel tax).
- Petrol 93: R14.30 (or R14.50 with fuel tax).
- Diesel: R13.75 (or R13.95 with fuel tax).
Why petrol prices are rising in South Africa
There are a couple of “old faithful” factors that are set to inflict further misery on our citizens at the pumps, too. First of all, this Eskom nightmare has battered the value of the rand. The recent bouts of load shedding have seen our currency lose ground on the American dollar and once ZAR starts to tank, petrol prices are on the ropes.
Secondly, factors outside of South Africa’s control are also set to have an impact. The price of crude oil has risen from below $50 in December to almost $65 this week. Like it or lump it, these global increases almost always ensure that fuel costs skyrocket in Mzansi.