IT seems that Russia’s invasion of Ukraine is not only affecting its neighbours but the whole world.
Fuel prices are expected to hit Mzansi motorists hard, as the mid-month predictions reveal.
On Tuesday, 15 March Mineral Resources and Energy Minister Gwede Mantashe said Mzansi needs to explore and find its own oil reserves if it wants to alleviate rising fuel costs.
Updating Parliament on rising petrol prices, Mantashe and the National Treasury explained how the impact of Russia’s invasion of Ukraine was affecting fuel prices.
According to the Department of Mineral Resources and Energy (DMRE), fuel costs are affected by a variety of variables, including worldwide crude oil pricing.
“How do we limit vulnerability? There are two things that I think we should investigate, one is exploration and that’s going to discover our own oil and gas,” Mantashe said.
Deputy director-general in the DMRE Tseliso Maqubela also briefed the committee saying New Zealand suspended fuel taxes for a period to help in the increase of prices.
The general fuel levy makes up 23% of the price and the Road Accident Fund levy makes up 13%.
“Treasury officials pointed out that it would not be possible to suspend the RAF levy without changing legislation as the levy is built into the Road Accident Fund Act. The RAF is also deep in financial difficulties with liabilities of more than R300 billion,” Maqubela said.
Engen sales and distribution company East Cape Fuels has made a forecast about the April petrol price.
The Queenstown-based petroleum company says the April price will see a huge increase.
It foresees diesel increasing by R3.25, unleaded 95 increase by R2.26, unleaded 93 by R2.19, and paraffin by R2,66.
