/ 2 April 2007

Brace for more petrol-price hikes, says AA

The record petrol-price increase of 68 cents a litre that kicks in at midnight on Tuesday won’t be the last, the Automobile Association (AA) said on Monday.

”Unfortunately, the high international crude-oil price does not bode well for consumers and the AA has warned that consumers can expect another price increase in May,” the AA said in a statement.

The wholesale diesel price is set to increase by 29 cents per litre.

Taxes and levies (excluding dealer and wholesale margins) constitute about 30% of the pump price of petrol.

The AA appealed to the government to ensure that a fair share of these go towards improving the country’s roads, road safety and law enforcement.

Motorists will pay approximately R35 more to fill a 50-litre tank than they did in March.

”The increase in transport costs will also impact on the price of consumer goods and commuter fees.”

Contributing to the price hikes are crude-oil prices of about $70 per barrel, the 5c per litre fuel tax and a further 5c per litre Road Accident Fund levy.

Transport tariff increases will also come into effect from Wednesday. These will primarily affect fuel prices in areas not served by pipelines.

They include a rail transport tariff increase ranging from 0,1 cents per litre to 1,5 cents per litre, and a road transport tariff increase of between 0,3 and 3,4 cents per litre. — Sapa