As of 1 December, motorists in South Africa face yet another steep fuel hike. The inland price of 93 and 95 unleaded petrol will hit a record high of R20,13 and R20,35 a litre, respectively. The news isn’t rosy for diesel users either, with MyBroadband noting a price hike of more than 72 cents per litre for 500ppm diesel and over 74 cents for 50ppm. With Covid-19 and the resultant lockdowns already doing their best to hamper the economy, price hikes such as this are squeezing the consumer for everything they’ve got. Fuelling a small, economical hatchback such as a Volkswagen Polo Vivo will now cost over R900, a lot of money for the average South African. Factor in other everyday expenses – school fees, rent, groceries, insurance, medical aid – and it seems things aren’t going to get easier for consumers anytime soon. “The main driver behind the price increases was the significantly weaker rand, in addition to annual price adjustments and a slate levy increase,” reports MyBroadband. The Department of Mineral Resources and Energy explained the rand depreciated “on average, against the US dollar (from R14.72 to R15.85 per USD) during the period under review when compared to the previous one.” Read the original article, Petrol price shock for South Africa, here. – Jarryd Neves
Petrol price shock for South Africa
By MyBroadband*
Many South African motorists will be paying more than R20 per litre of petrol from December.
Minister of Mineral Resources and Energy Gwede Mantashe published the latest adjustments to South Africa’s fuel prices on Monday, confirming a steep increase in petrol and diesel prices from Wednesday, 1 December 2021.
A litre of 93 or 95 unleaded petrol will cost 81 cents more. That takes the inland price of 93 unleaded petrol from R19.32 to R20.13, and 95 unleaded petrol from R19.54 to R20.35.
The price per litre of 500ppm diesel will also increase by more than 72 cents, while 50ppm will also go up by over 74 cents.
The main driver behind the price increases was the significantly weaker rand, in addition to annual price adjustments and a slate levy increase.
“The Rand depreciated, on average, against the US Dollar (from R14.72 to R15.85 per USD) during the period under review when compared to the previous one,” the department explained.
“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by over 34 cents per litre.”
Annual margin adjustments on petrol and diesel prices contributed another 17.84 cents per litre and 8.20 cents, respectively.
In addition, the Self-Adjusting Slate Mechanism rules effective from 1 December 2021 allowed for a slate levy increase of 26.30 cents per litre to compensate the industry under-recovery in fuel sales.
In short, the fuel prices increases applicable from Wednesday, 1 December 2021, are as follows:
- 93 Unleaded Petrol — 81 cents increase
- 95 Unleaded Petrol — 81 cents increase
- 500ppm Diesel — 72.50 cents increase
- 50ppm Diesel — 74.50 cents increase
- Illuminating Paraffin — 42.20 cents increase
The government said it was important to appreciate that fuel prices were soaring worldwide due to persistently high crude oil prices.
“Record pump prices have been experienced in many other countries,” the department said.
“The Department is aware of the inflationary nature of the high global fuel prices and the impact on the transport costs for commuters.”
However, while the average Brent crude oil price also increased from $82.50 to $83.00 and pushed up the cost of refined petroleum products, it only contributed 1.50 cents to the price per litre for petrol and 5.31 cents per litre of diesel.
Several organisations have proposed measures to bring down fuel prices as many South Africans still struggle to recover from the financial impact of the Covid-19 impact.
These include deregulating the wholesale and retail prices of petrol and diesel, lowering fuel and road accident fund levies, or imposing a maximum fuel price.
Read more:
- Is the petrol increase squeezing your wallet? Save money with these fuel saving tips
- Petrol R20 a litre? A “realistic scenario” before year-end, says AA
- Electric vehicles in SA: What’s currently available – and what’s coming
