/ 27 February 2007

AA predicts increase in petrol price

Motorists should expect toll fees and the petrol price to increase in March, said the Automobile Association (AA) on Tuesday.

Toll-road fees would increase by 5% to 6% while the petrol price was expected to go up by 20c to 25c per litre, said AA spokesperson Petro Kruger.

Diesel would probably increase by 10c to 15c per litre.

”While the increase is in line with economic expectation, it will have a negative impact on the price of consumer goods due to the increased freight costs that inevitably are passed on to the consumer.

”This, combined with the expected increase in the price of petroleum products for March and April, does not bode well for the South African consumer,” said Kruger.

In April the price of petrol will increase by another 10c a litre in order to increase contributions to the fuel levy and the Road Accident Fund levy as announced by Finance Minister Trevor Manuel in his recent budget speech. — Sapa