SA MOTORISTS THROTTLED BY SKYROCKETING FUEL PRICES

Tue 05 July 2022:

The Department of Mineral Resources and Energy (DMRE) has announced a price increase of at least R2.30 for all fuel variants from Wednesday.

The price of illuminating paraffin is also expected to go up with gas prices showing a decrease.

The price adjustments are as follows:

Petrol (both 93 ULP and LRP) will increase by R2.37 per litre;
Both grades of petrol 95 will increase by R2.57 per litre;
0.05% sulphur diesel will increase by R2.31 per litre;
Diesel 0.005% sulphur will increase by some R2.30 per litre;
The price of wholesale illuminating paraffin will increase by R1.66 per litre;
The Single Maximum National Retail Price for illuminating paraffin will also increase by R2.21; and
The Maximum LP Gas Retail Price will decrease by R2.18 per kilogram.

The department explained the factors leading to the price adjustements.“The average Brent Crude oil price slightly increased from 115.00 US Dollars (USD) to 115.77 USD during the period under review. The average international product prices of petrol, diesel and Illuminating Paraffin increased during the period under review while the price of LPG decreased. The declining global refining capacity is having a negative impact on petroleum product prices.

“The Rand appreciated, on average, against the US Dollar (from 15.95 to 15.76) Rand per USD during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 19c,” the department said.

Furthermore, the temporary relief measure against increasing fuel prices announced by the DMRE and National Treasury has decreased from R1.50 to 75c with consumers to now carry that burden.

Gas prices reduced as a result of low seasonal demand in the Northern Hemisphere.

Automobile Association warned

The Automobile Association (AA) issued a warning that the government’s announcement of fuel price increases will severely hurt consumers who are already financially stretched and put additional strain on an already fragile economy.

The AA claimed that while the government is under increasing pressure to come up with a solution to the rising cost of fuel, temporary relief is not sustainable.

“We understand that government has little leeway in terms of international petroleum prices and the Rand/US dollar exchange rate, which is why we have called, and will continue to press, for a review of the fuel price, an area where the government has control over the fuel price.

“There is a need to interrogate all the components of the fuel price, to determine whether all these components are still necessary in the existing formula, and to establish if the current calculations of these components are correct. The longer this review is not initiated, the longer the country will wait for lasting solutions,.”

(with news agencies)

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