Cape Town – Lower international petrol prices and a stronger rand will be a boost for motorists in March, who will likely see a 70c a litre drop in the petrol price, the Automobile Association (AA) said on Friday.
“Some measure of stability had returned to the fuel price picture,” said the AA.
The Department of Energy will release the official fuel price rate any time between Friday and Monday and it will be implemented on Wednesday.
However, the AA warned that Treasury’s decision to add a further 30c to the fuel levy could dampen the mood in April, when the measure will be implemented.
The AA said it was concerning that motorists were again being called upon to fund shortfalls in government revenue.
"The National Treasury forecasts that the increased levy will add approximately R6.8bn to the fiscus. This revenue is collected from the most economically active and heavily-taxed sector of the population," the association commented.
The AA also commented that government appeared uncertain over its approach to increases in the fuel levy.
"When a moderate increase of 10c to 15c a litre was proposed to fund the Gauteng Freeway Improvement Project, it was rejected by Sanral," it said.
The AA said the combined increase in the fuel levy over the past two budgets amounted to 60.5c a litre, with an additional 50c a litre going to the Road Accident Fund since 2015.
Outa chairperson Wayne Duvenage on Wednesday questioned why government could increase the general fuel levy by 60c over two years, but can’t add another 9c to cover e-tolls.
“It seems strange government claims it cannot place an additional 9c on the fuel levy to cover e-tolls as this will affect the poor, yet it has no problem increasing the general fuel levy by 60c over the past two years,” he said.
READ: Gordhan missed fuel levy chance to kill e-tolls - Outa
The AA said a steady appreciation in international diesel prices has meant that diesel will be up by around 15c a litre.