A FUEL levy increase is expected to kick in at the end of this month into next month.
According to the Automobile Association (AA), the levy will contribute to what is expected to be extremely high fuel price increases.
The association said international petroleum prices were being worsened by a dipping Rand/US dollar exchange rate, painting a grim picture for local fuel prices.
It was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA said petrol was set for a 90c/L rise, diesel for an increase of 66 cents and illuminating paraffin for 62 cents.
These expected increases did not include the 26c/L increases to the General Fuel and Road Accident Fund levies.
Within the current scenario with the addition of the levies, petrol was expected to increase by a whopping R1,16 a litre and diesel by 92c/L.
“The expected increases factored in, a litre of 95 ULP Inland currently at R16,32/L will now cost R17,48/L of which R6,10 will be taxed through the GFL and RAF.
“This means at least 35% of the cost of a litre of this petrol will be taxed. The price of diesel, currently pegged at R14,12/L, will increase to R15,04 of which R5,96, including increased levies, will be taxed,” said the AA.
