Some fuel cheer this month – AA

Some fuel cheer this month – AA
MOTORING NEWS – Lower international petrol prices and a stronger rand to US dollar exchange rate have combined to create a pleasing 70c a litre drop for petrol.

This was according to the Automobile Association (AA) that was commenting on unaudited end-month data released by the Central Energy Fund (CEF).
The AA Association said some measure of stability had returned to the fuel price picture.
“Unfortunately, a steady appreciation in international diesel prices has meant that diesel will be up by around 15c a litre.”
The announcement by the Minister of Finance Pravin Gordhan of a 30c a litre increase in the fuel levy means that any movements in the fuel prices at the end of March will be negatively affected.
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 R6,8-billion to the fiscus. This revenue is collected from the most economically active and heavily-taxed sector of the population,” commented the AA Association.

The AA also commented that government appeared uncertain over its approach to increases in the fuel levy.

“When a moderate increase of ten to 15c a litre was proposed to fund the Gauteng Freeway Improvement Project (GFIP), it was rejected by Sanral,” said the AA Association.

The AA pointed out that the combined increase in the fuel levy over the past two Budgets (2015 and 2016) amounted to 60,5c a litre, with an additional 50c going to the Road Accident Fund (RAF) since 2015.