With fuel price set to go up next month, clarity needed if govt will intervene

The Mineral Resources and Energy Department had previously stated that the removal of the general fuel levy was only for April and May as the sale of strategic reserves only covered these months.

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JOHANNESBURG - Clarity is now needed about whether government will step in once again to help contain rising fuel prices with significant increases expected next month.

The Mineral Resources and Energy Department had previously stated that the removal of the general fuel levy was only for April and May as the sale of strategic reserves only covered these months.

However, the AA stated earlier this week that unaudited data from the Central Energy Fund was pointing to massive fuel price increases across the board next month.

All eyes are now on the department and whether it will come up with a plan to blunt the blow with 11 days to the end of the month.

In late March, government reduced the general fuel levy by R1.50 for April and May which brought temporary relief to consumers.

But government did indicate that this was just for the two months.

However now, the latest data released by the aa shows that petrol is expected to increase by between R1.93 and R1.97 a litre, diesel is expected to go up by between R1.60 and R1.62 a litre, and illuminating paraffin is expected to climb by a whopping R2.14 a litre.

Therefore, with the levy reinstated, petrol prices look set to increase by just under R3.50 a litre.

The South African Reserve Bank increased the repo rate by 50 basis points on Thursday.

So this, together with the high fuel prices, will deal a devastating blow to consumers.