How the fuel price increase affects you
Motorists are urged to brace themselves as a fuel hike kicked in overnight.
The Automobile Association (AA) released a statement which stated all fuel types would be more expensive this month when the department of mineral resources and energy (DMRE) adjusted fuel prices for August.
“Unleaded petrol 95 cost R14.86 a litre in January, compared to the expected new price of R18.22. A litre of diesel cost R13 in January, compared to the expected August price of R15.56 a litre,while a litre of illuminating paraffin was expected to cost around R9.61 when the price was adjusted for August, compared to itsprice of R7.39 in January,” said AA spokesperson Layton Beard in a statement.
Beard added the new increases would mean the price of petrol would have increased nearly 23% in seven months since January, while the price of diesel would have gone up approximately 20% and the price of illuminating paraffin would have increased by approximately 30%.
“The average rand/US dollar exchange rate consistently trended upward during July, and the weaker local currency would make it more expensive for South Africa to import fuel. Over the same period, international oil prices averaged higher, despite a mid-month pull-back,” Beard said.
“We expected around 83 cents a litre higher for petrol, 48 cents a litre for diesel and 48 cents for illuminating paraffin.”
Development economist Tatenda Zingoni said the rise in the fuel prices would have far-reaching consequences for the already strained consumers as the cost increase was passed on to them.
“Consumers are between a rock and a hard place given the financial strain which was brought about by the pandemic, through job losses, decreases in salaries, etc. Regardless of one’s socioeconomic standing, everyone has to eat,” he said.
Zingoni added food price increases were set to be driven by the latest price hikes.
“Transport costs are also set to increase, cutting into the already thinning budgets of consumers. Consumers in the lower LSMs who rely on paraffin as a source of energy for cooking are also set to be highly affected by the 30% price increase,” he said.
The department of energy and mineral resources’ Robert Maake said it was part of regulations for prices to be adjusted.
“Our pricing formula is transparent and in line with the working rules it must be adjusted on the last Friday of every month and implemented on the next Wednesday.
“To change these measures and defer such prices are powers not even the minister has,” he said.
An unhappy motorist, Bulelwa Dabula, said the fuel hike would have a ripple effect.
“The fuel hike saddens me because everything is already pricey including food,” Dabula said.
“Rates and electricity are already expensive will also probably go higher. The sad thing is we were not getting an increase in our salaries and it’s worse for people like me who work in NGOs that have not had salary increases in five years, while the prices of everything around us was increasing.”
Another concerned motorist, Khululile Mkhize, said the fuel increase would make matters worse for the already fragile economy.
“The increase in petrol price is upsetting and quite stressful because it will add to the financial burden that we faced due to youth unemployment and retrenchments,” she said.