Business#OFMBusinessHour: Concerns mount over record high SA fuel prices
─── 22:22 Wed, 07 Apr 2021
The Automobile Association of South Africa (AA) is concerned that households will buckle under the pressure brought on by record high fuel prices, following an almost R 1 hike in the price of petrol on Wednesday (7 April).
The R 1 hike is for 95 Octane fuel, whilst 93 Octane is up by 95 cents per litre bringing the price per litre of petrol to about R 17. Diesel on the other hand is up by between 63 and 65cents per litre, whilst the price of illuminating paraffin increased by 34cents, pushing it up to R8.80 cents.
AA spokesperson, Layton Beard, says the hike comes at a bad time for South Africans, with other imminent hikes for electricity, public transport rates and other government instituted fuel levies coming up. Whilst murmurs on the ground alleged the fuel price hike was brought on by the Suez Canal crisis, in which the Evergreen cargo ship got stuck in the canal, blocking traffic, almost two weeks ago, Beard says South Africans will only see the impact of the crisis later on in April, as those figures trickle in.
Higher international petroleum prices and a weaker rand are said to be the main contributors to the record high petrol price. Furthermore, there is the issue of the 27c/litre fuel levy imposed by government as of April 2021.
When tabling his budget speech, Finance Minister, Tito Mboweni, announced the 27c/litre levy would be made up of 15c/litre general levy; 11c/litre for the Road Accident Fund; and 1c/litre for the carbon fuel levy. Beard says it’s too early to predict if South Africans should brace themselves for further fuel hikes in the upcoming months, explaining there are multiple factors that determine the fuel price and any of those factors could change in the coming months.
Meanwhile South Africans on social media, have lamented, the steep petrol price hikes.
#OFMBusinessHour: Concerns mount over record high SA fuel prices: