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Huge fuel price increase for November

Screen Shot 2021-11-16 at 7.26.47 AM

Source: Bizcommunity, 2 November 2021, photo credit: Competitive Enterprise Institute

According to the Automobile Association (AA), a perfect storm of demand imbalances, refinery costs, natural gas price hikes and Rand weakness will see the petrol price According to the Automobile Association (AA), a perfect storm of demand imbalances, refinery costs, natural gas price hikes and Rand weakness will see the petrol price close in on R20 a litre in the run-up to Christmas.

Diesel will be up by a remarkable R1.48 a litre, illuminating paraffin is set to jump by a staggering R1.45 a litre, and petrol will rise by R1.21 a litre for an inland price at the pumps of R19.54 for a litre of ULP 95. The price of 95ULP in Polokwane is already testing the R20/l mark, with fuel there now coasting R19.97/l.

The adjusted figures announced by the Department of Mineral Resources and Energy (DMRE) last night are in line with the outlook provided by the AA more than two weeks ago. The association says it will continue to push for answers on how the levies incorporated into the fuel price are being allocated and managed.

It says government must also clarify the additional Slate Levy that was imposed on the fuel price; the Slate Levy has ballooned to R1.657bn, and at the current level is clearly insufficient to reduce the deficit and protect South African fuel users from the interest burden on this amount.

“The fuel price has a direct bearing on an already weak economy as it continues to drive up inflation on essential consumer goods and affects every South African. As we have said many times in the past, all the elements that comprise the fuel must be fully interrogated to determine if they are necessary. Given that the fuel prices are now at record highs, such a review is overdue,” says the AA.
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