By: Aneeqa du Plessis
Alas, after just a few brief months of reprieve, motorists have been hit with an increase in fuel prices. This comes after the Department of Mineral Resources and Energy announced that both grades of petrol has increased by 28-cents a litre, diesel by nine-cents a litre, and the price of illuminating paraffin has gone up by 58-cents.
Speaking on VOC’s Breakfast show on Wednesday morning, Automobile Association’s (AA) Eleanor Mavimbela said a much heftier increase was anticipated but due to the stronger rand the blow has been cushioned.
“Fortunately for us the strong rand against the dollar assisted us in some way but ultimately an increase in any way is negative news. You may look at 28 cents and think it’s not much but if you add it onto each litre it becomes a hefty amount and creates a dent in the pocket of the consumer,” said Mavimbela.
According to Mavimbela, factors attributable to the increases include the price of Brent Crude Oil.
“Internationally the price of Brent Crude Oil skyrocketed over the last month and we are holding thumbs that we will not experience the same record highs we saw last year this time,” added Mavimbela.
Meanwhile, Congress of South African Trade Unions (Cosatu) has slammed government for failing to cushion the rising cost of living for many South Africans. Cosatu says consumers will be unable to meet their basic needs as the cost of electricity and petrol escalates. It adds that together with the electricity increase and the repo rate hike, it will leave many workers and their families struggling.
In terms of projections going forward, the AA believe if the price of Brent Crude Oil continues to rise this will cement continued fuel price trajectory.
“The AA is again appealing to the Minister of Energy to halt the increase of the fuel levy because come April we will see the price of electricity increase as well and this will leave the consumer completely spent because as we know a hike in fuel amounts to a hike in everything else,” added Mavimbela.
VOC
