While South Africans are still recovering from the VAT increase implemented on April 1, consumers can expect another big hit in the form of a huge hike in the price of petrol at midnight tonight.

The Department of Energy has confirmed that petrol will increase by 72 cents per litre (95 ULP) and 69 cents (93 ULP), while diesel will cost 65 cents more.

Illuminating paraffin will increase by 2 cents a litre.

The Department of Energy said in a statement that two factors have resulted in the increase.

The  first is the fuel levy and Road Accident Fund levy which increased by a 52 cents from 1 April, in line with the tax adjustments announced during the budget speech.

The second is an increase in transportation costs. This is an annual increase of 3.4% in road transport tariffs announced by Nersa.


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