A nightmare for South African motorists as fuel prices take another hike
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The Department of Mineral Resources and Energy has recently announced an increase in fuel prices, 93 and 95 unleaded Petrol to increase by 51c while diesel will increase by R1,42 per litre. The department mentioned that the drastic increase is caused by the high prices of petroleum. Since oil is priced in US currency, the rand-to-dollar exchange rate puts South Africa in a tight spot as it continues to weaken against the dollar.
Image: iStock
The rand weakened from an average of R17,55 compared to the dollar in September to R18,11 in October. The depreciation of the rand leads to a higher contribution to the basic fuel prices of petrol, diesel and illuminating paraffin.
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The expected increase in fuel prices as of Midnight 2 November:
- Petrol (both 93 and 95 grades) will increase by 51 cents per litre.
- Diesel 0.05% Sulphur will increase by R1,43 per litre
- Diesel 0.005% Sulphur will increase by R1,44 per litre
- Illuminating Paraffin will increase by 77 cents per litre
The department mentioned “The high demand and continued low supply of diesel led to a higher increase of diesel prices compared to petrol”. The shortage of diesel supplies has also contributed to load shedding, as it affected Eskom’s efforts to fuel its emergency generators. With diesel set to rise by R1,43 per litre, taking the price to a new record in South Africa, this affects transporters directly as most trucks used to carry goods across the country use diesel.
Motorists will have to pay R23 more when filling up to capacity from an empty tank and diesel drivers will have to cough out over R64 more when filling up depending on fuel tank size. Larger vehicles with larger tanks automatically mean a larger amount when filling up. Vehicles with 80-litre tanks could be looking at R40 more for petrol and over R115 more for diesel. Diesel is a major input cost in many sectors and the increase in the price of fuel ultimately hurts consumers as manufacturers pass the increase down the line, this will inevitably increase the cost of living in South Africa as we head into our festive season.
