By Jason Woosey for IOL
South African motorists and commuters are facing tough times ahead with record increases for both petrol and diesel set to kick in from Wednesday, 03 November.
According to the Automobile Association, petrol is set to rise by R1.21 per litre, while diesel will go up by a staggering R1.48 a litre and illuminating paraffin by R1.45.
This will inflate the price of a litre of 95 Unleaded petrol to R18.82 at the coast and R19.54 in the inland regions, where the slightly cheaper 93 Unleaded grade will now retail for R19.32. The wholesale price of 50ppm diesel will now amount to R16.63 at the coast and R17.23 inland, but keep in mind that the retail prices, which are unregulated and therefore vary from station to station, will be somewhat higher than that.
But how much more will South Africans pay per tank?
Putting 35 litres of 95 Unleaded into a compact hatchback with a 40 litre tank, such as a Volkswagen Polo or Hyundai i20, will cost an additional R42.35 at the coast (or R658.70 in total), while filling up with 93 Unleaded in Gauteng will now cost R676.20.
Putting 50 litres into a medium-sized car with a 55 litre tank, such as a Toyota Rav4 or Corolla Quest, will cost an additional R60.50, bringing the price of a tank to R941 for 95 ULP at the coast and R966 for 93 ULP inland.
A 75 litre diesel refuel in a bakkie such as a Toyota Hilux or Ford Ranger, or a large SUV like the Fortuner, will cost an additional R111, with the retail tank price differing, depending on where you fill up. Do shop around!
Why is fuel going up?
According to the AA, a “perfect storm” of demand imbalances is behind the record increases, including rand weakness, international oil prices and refinery costs. It also doesn’t help that fuel taxes currently account for at least R6.11 for every litre of fuel.
The cumulative effect of these increases is even more disastrous than the latest increases suggest. Consider that petrol is now around 40% more expensive than it was at the beginning of this year. With Brent Crude oil prices currently sitting at $84.71 per barrel and the rand trading at R15.37, there is little chance of any fuel price relief in the near future.
“The fuel price has a direct bearing on an already weak economy as it continues to drive up inflation on
essential consumer goods and affects every South African,” the AA said. “As we have said many times in the past, all the elements that comprise the fuel must be fully interrogated to determine if they are necessary. Given that the fuel prices are now at record highs, such a review is overdue”.