Fuel nightmare
Motorists should brace themselves for a shock - South Africa’s fuel prices are already hovering around record highs, but June could see one of the biggest increases to date if no further interventions are announced by the government.
Motorists have been left in shock following a massive hike in the fuel price on Tuesday.
Although the National Treasury has extended the fuel price “tax holiday” of R1.50 at the 11th hour, vehicle owners will still be klapped with a huge increase from today.
The Department of Energy says the steep increases is due to higher international oil prices and a weaker rand, which depreciated from an average of R14.90 to the US dollar the previous month to R15.95 in May.
In addition oil prices have remained high since Russia invaded Ukraine in February, by last night Brent Crude oil was trading at $121.67.
FuelPriceUpdate ⛽️ In a joint statement released today, the Ministers of Finance and Mineral Resources and Energy announced the extension of the reduction to the General Fuel Levy (GFL) for June and July. 👇 #JoinTheMovement #AASA #FuelPrice https://t.co/VxooMKqxSi
— AA South Africa (@AASouthAfrica) May 31, 2022
The department said 93 Unleaded petrol will increase by R2.43 per litre, while 95 Unleaded will go up by R2.33.
Diesel prices have increased by R1.07, and paraffin is going up by R1.56 per litre.
That means that from today, a litre of 95 Unleaded will cost R23.42 at the coast and the cost price of 50ppm diesel will rise to R22.63.
The Automobile Association warns that June’s massive fuel price hikes are going to hurt consumers and the economy, reports IOL.
“The joint announcement (on the extension of the R1.50 general fuel levy reduction) is a welcome development, and we are sure consumers are grateful that the government has stepped in with this financial reprieve. Even so, the adjusted fuel prices still take the fuel price to record highs, and consumers will have no option but to tighten their belts to accommodate for these significant price jumps,” the AA said.
“Apart from this immediate relief, we acknowledge that the government has limited options in dealing with a crisis that is affecting countries around the world, not only South Africa,” the association added.