South African motorists’ association warns of another sharp petrol price rise

Early Central Energy Fund data points to a possible petrol price increase of almost R5 a litre in South Africa next month. Automobile Association CEO Bobby Ramagwede called for temporary tax relief, SABC reported on October 10.

SABC said the forecast followed the fuel price increase that took effect this week. Ramagwede criticised the pace of petrol price rises and said another increase of about R5 would add pressure on motorists and consumers.

The association chief estimated that roughly R7/R8 of taxes included in the fuel price were unrelated to the underlying commodity. He argued that the government could temporarily forgo part of those receipts to soften the shock.

Ramagwede proposed maintaining relief until global oil prices stabilise after the conflict. His remarks are the association’s demand to government. The preliminary CEF signal does not establish that another increase has been approved or that its final size will be R5.