Reports from the Central Energy Fund intel that petrol and diesel prices will see an increases in the first week of June. The new levy for petrol from is expected to increase R2.35 to R3.85 per litre. The levy on diesel will be hiked from R2.20 to R3.70 per litre and illuminating paraffin is expected to climb by a R2.14 a litre.

The Automobile Association (AA) mentioned that the return of the general fuel levy will “result in price shocks never seen before”. All in all the petrol price could be around R3.47 a litre more expensive than current levels. “In late March government reduced the GFL by R1.50 for April and May which brought temporary relief to consumers. The big question now is how government plans to deal with rising fuel costs from June onwards, especially given that baseline prices are forecast to move significantly upwards in June,” notes the AA.

AA says people should keep in mind that these price increases will take effect the middle of the month, but will only be concluded later on. This means the final data may vary between now and when the adjustment is finally made in june.

“We are rapidly nearing the end of May and the fuel outlook is looking bleak. Government needs to address this issue sooner rather than later; consumers are anxious about what lies ahead, and government should allay these concerns by indicating as early as possible what steps it will be taking to mitigate against rising fuel costs,” says the AA.