South African motorists and truck operators are in for a heavy knock as government has officially confirmed massive fuel price increases taking effect from April 1.
The Department of Mineral and Petroleum Resources (DMPR), together with National Treasury, announced the new prices on Tuesday, confirming what many in the transport sector feared, diesel is taking a serious hit.
Here’s what you’ll pay from April
From Wednesday, the adjusted prices will be:
- Petrol (95 ULP)
- Coast: R22.53 per litre
- Inland: R23.36 per litre
- Petrol (93 ULP)
- Inland: R23.25 per litre
- Diesel (50ppm)
- Coast: R25.35 per litre
- Inland (Gauteng): R26.11 per litre
The increases
Despite the temporary relief announced earlier by Enoch Godongwana, fuel prices are still climbing sharply:
- Petrol: +R3.06 per litre
- Diesel: +R7.37 to R7.51 per litre
- Illuminating paraffin: +R11.67 per litre
That R3 levy cut has softened the blow slightly, but, with diesel jumping over R7 per litre it is still a brutal increase for anyone running a fleet.
What’s driving this?
The spike is largely due to surging global oil prices following tensions in the Middle East. Brent crude has jumped to around $94 per barrel, up from about $69 the previous month.
A weaker rand hasn’t helped either, making imports even more expensive.
Relief comes at a cost
Government’s R3 per litre tax relief will cost around R6 billion per month. Treasury says the measure is temporary and will be reviewed monthly, with plans to recover the lost revenue later.
They also moved to calm fears around fuel shortages, saying supply is stable and recent issues were caused by panic buying and local distribution delays.
Big pressure on the trucking sector
SA Trucker, this is where it gets real.
Diesel sitting above R26 inland is going to squeeze operators hard. Transport costs are going up, and that pressure will flow straight through the supply chain.
Expect higher food prices, rising logistics costs, and even taxi fare increases, as warned by the industry.
Bottom line, the R3 relief helps, but it’s nowhere near enough to stop the damage. This one is going to be felt across the board.
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