Personal-Finance

Fuel price adds to our agony

2019-03-11 17:48

Last week, South Africans had to absorb a 74c per litre petrol price hike, while diesel increased by 91c a litre.

That means a 50-litre tank costs an additional R37 and R45, respectively, to fill up.

That is one less takeaway coffee, pack of cigarettes or bottle of coke that you can afford!

But before we go into a flat panic, it is worth remembering that we had the significant decrease in the petrol price in January of R1.22.

After the increase last week, 95 octane unleaded petrol is still 42c a litre less than what we were paying in December.

If your public transport costs did not decrease in January, hopefully you’ll will see drivers absorb this increase without putting up fares.

This month’s price increase was due to a rise in the dollar price of oil and a weaker rand, and economists are not predicting lower oil prices or a stronger currency.

To add salt to the wound, fuel taxes will increase in the next few months by 29c a litre for petrol and 30c a litre for diesel.

On April 3, the annual fuel levy and Road Accident Fund increases announced in last month’s budget speech will be introduced, raising the fuel price by a further 20c a litre.

On June 5, the carbon tax of 9c a litre on petrol and 10c a litre on diesel will also come into effect.

Altogether, the total amount of tax paid on a litre of petrol will be R5.63. From a full tank of petrol, about R281 will go to government. 

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March 17 2019