26 February 2016, Johannesburg – 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.