Petrol price to increase ahead of new fuel levy

By Staff Writer
Finance Minister Nhlanhla Nene announced that the fuel levy would be increasing by 80.5 cents a litre effective from 1 April 2015, in his budget speech
 
However, before consumers feel the effects of this increase, they are set to feel the effects of the rising oil price.
 
This means that with petrol will increase on Wednesday (4 March 2015).
  Inland Coastal
Unleaded 93 R0.96 (R11.05) R0.96 (R10.81)
Unleaded 95 R0.96 (R11.27) R0.96 (R10.86)
LRP* R0.96 (R11.05) R0.96 (R10.86)
Diesel 50ppm R0.74 (R10.04) R0.74 (R9.73)
Diesel 500ppm R0.74 (R10.00) R0.74 (R9.70)
Source: FIllApp SA Fuel Alerts
*LPR: Lead Replacement Petrol
 
The fuel price
 
Since October last year (2014), consumers have seen a much celebrated drop in the price of fuel. While the fuel price is not likely to reach the same level that it was at this time last year, consumers are still going to see quite a large increase after the new fuel levy is implemented in April.
 
In a recent report, Jana van Deventer, an economist with ETM Analytics, noted: "Although consumers are set to pay more for fuel in coming months, it will still be much cheaper compared to a year earlier and should continue to provide marginal reprieve to tight household budgets, especially in the event that we start seeing some second round effects."
 
The fuel levy
 
The fuel levy that is being implemented on 1 April will see fuel increasing by 80.5 cents per litre, on top of any further increases in the fuel prices that may be announced.
 
If, for arguments sake, the fuel price does not increase in April, and only the fuel levy is increased, the results will be as follows:
 
Petrol:
  INLAND COAST
93 95 LRP 93 95 LRP
4 March 2015 R11.05 R11.27 R11.05 R10.81 R10.86 R10.86
1 April 2015 R11.86 R12.08 R11.86 R11.62 R11.67 R11.67
 
Diesel:
  INLAND COAST
50ppm Diesel 500ppm 50ppm Diesel 500ppm
4 March 2015 R10.04 R10.00 R9.73 R9.70
1 April 2015 R10.85 R10.81 R10.54 R10.51
Source: Calculations based on FillApp prices, and the fuel levy increase. Correct as of Monday, 2 March 2015. 

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