AA says December fuel price disaster is 'entirely home grown'
Fuel prices will be through the roof in December, with the price of oil playing almost no part. This is according to the Automobile Association (AA), which was commenting on price increases announced by the Department of Mineral Resources and Energy (DMRE) on Monday, and which come into effect at midnight on Tuesday
-30 November 2021 - 14:12At midnight petrol across all grades will rise by 81 cents a litre, crashing through the R20/l barrier for the first time in history to reach R20.13 for a litre of 93ULP and R20.35 for 95ULP.Image:jarun / 123rfFuel prices will be through the roof in December, with the price of oil playing almost no part. This is according to the Automobile Association (AA), which was commenting on price increases announced by the Department of Mineral Resources and Energy (DMRE) on Monday
, and which come into effect at midnight on Tuesday.The association says the increases again point to the need for an urgent investigation and recalculation of the current fuel pricing model and its existing elements.Petrol across all grades will rise by 81c/l, crashing through the R20/l barrier for the first time in history to reach R20.13 for a litre of 93ULP and R20.35 for 95ULP. Diesel will rise by as much as 75c/l a litre, and illuminating paraffin by 42c/l.
“This price disaster is entirely home grown. Internationally, oil prices have pulled back from their recent highs and Brent crude is currently trading around $75 a barrel. The majority of this month's under-recovery is because of the weakening of the rand against the US dollar,” the AA notes. headtopics.com
The AA says that while the recent travel bans related to the Omicron variant of Covid-19 had caused a spike in the exchange rate, the underlying weakness was a continuation of a trend which began with the midyear riots and looting.Fuel price increases/decreases January to December 2021.
Image:Supplied“In under six months, SA has slipped from R13.40 to the US dollar in June to its current price pegged at around R16.15.”Increases in the retail margin and a related bouquet of costs which are traditionally adjusted for December annually (such as wholesale margins and secondary storage and distribution) were fairly modest, and totalled around an extra 17c/l a litre.
“The increases year on year since December 2020 are astronomical. Petrol has increased by more than 40%, diesel by around 44%, and illuminating paraffin by more than 70%. Wages and salaries have not kept pace with these heavy increases, and consumers will undoubtedly be under more financial pressure because of the knock-on effects on other products,” notes the AA.
From January to the latest increase for December announced yesterday, ULP95 petrol has increased by a staggering R5.87 a litre, while ULP93 petrol has increased by R5.89 a litre over the same period. Diesel 0.05 has climbed by just under R5.47 a litre over this period, while diesel 0.005 has increased by R5.50 a litre. Users of illuminating paraffin are paying R4.83 more in December than they did in January. headtopics.comRead more: Sowetan LIVE »
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70% of the petrol price is taxes
Fuel hikes a stretch too far for stressed consumers: expertsLatest fuel price hike will see petrol breach R20 per litre from December, with a call for government to soften the blow by reducing levies. Yoooo guys this so painful especially those who drives to work this is challenging! Try public transport n save guys or reside close to work so can able to walk. Also food hiking up🤦🤦 I wonder the rates? Knowing that my investment is in safe hands got me excited with Hendricksnino77 made it possible with his excellent trading technique beginning this great journey I invest R30,000 as capital and in few days I got a return of R90,000 his confidence reliability Hendricksnino77
Market data — November 28 2021Market data including bonds and fuel prices
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