• Fuel prices have breached R20/litre in South Africa.
• The AA calls on the fuel price structure to be revisited and adjusted.
• Between January and 1 December 2021, petrol increased by almost R6.00/litre.
• For more motoring stories, visit Wheels24
It's finally happened: South Africa's fuel price has breached the R20 per litre mark. This comes on the eve of the 2021 holiday season as the new prices will take effect at midnight tonight, 30 November.
As of 1 December, 93 ULP and 95 ULP will cost R20.13 and R20.35/litre, respectively - an increase of 81 cents in both cases. The price of diesel per litre will increase by 75c/litre. The Automobile Association (AA) says that from January 2021 to the latest increase announced for December, ULP95 petrol has risen by a staggering R5.87/litre, while ULP93 petrol has increased by R5.89/litre over the same period.
Diesel 0.05 has climbed by just under R5.47/litre over this period, while diesel 0.005 has increased by R5.50/litre.
The AA says: "This price disaster is entirely homegrown. 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 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.
"These increases are severe and will undoubtedly have major negative implications on already financially constrained consumers. In the last two months alone, petrol has increased by more than R2.0/litre, diesel by between R2.21 and R2.23/litre, and illuminating paraffin by R1.83/litre. These massive increases, we believe, strengthen our call for a review of the fuel price structure and for a recalculation of all the elements that comprise the fuel price."