AA concerned about steep increases in diesel, illuminating paraffin

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The Automobile Association (AA) says it is concerned about the steep increases in diesel and illuminating paraffin. It says this will put extra financial pressure on poorer households already struggling to make ends meet.

Drivers of diesel-powered vehicles face another substantial increase, this time up to 98c a litre in the price of their fuel and owners of petrol-powered vehicles benefit from a 12c a litre drop in the price of fuel from Wednesday.

Mineral Resources says the decrease in petrol is due to the Rand appreciating during the period under review.

The cost of diesel will also impact the economy, as it remains a major input cost in manufacturing and agriculture.  Illuminating paraffin users will have to fork out an additional 79.6c a litre.

The General Fuel Levy (GFL) decrease by R1,50c is cushioning the blow of the increases, but the association says a more permanent solution must be found before month-end.

Government provided short-term relief by reducing the GFL, but this relief ends at the end of May going into June.

VIDEO: Last month Finance Minister Enoch Godongwana proposed R1.50 temporary fuel levy reduction:

COVID-19 restrictions in China, a huge importer of crude oil have also led to reduced demand for crude oil.  Furthermore, the US announced the release of crude oil strategic stocks to curb crude oil price increases.

Last month, the AA said the R1.50 reduction on the GFL announced by the Minister of Finance is welcome and will take some pressure off embattled consumers.

“The intervention to cut the GFL is significant as it shows government is taking the issue of rising fuel costs seriously, which is to be welcomed. It also has indicated that it is looking at several proposals to deal with rising fuel costs in the future.

“Whatever plans government is considering, though, these should be fast-tracked as the trend of increasing fuel prices is likely to continue in the short- to mid-term, especially as the situation in Ukraine remains unresolved, which is adding pressure to the international petroleum product price, and, in turn, to local prices. Our concern, as always, is the impact of all of this on consumers and for that reason, a sustainable, long-term solution should be found sooner rather than later,” concludes the AA.


Despite some relief at the pumps, some motorists say they are still struggling to fuel their cars, especially drivers of diesel-powered cars.

One motorist says, “It’s very bad with the diesel, especially when the diesel is up. I think all South Africans should park their cars in the garage.  It’s too much now.”

Another one says, “I’m feeling so bad now because the prices are going up and down because people are losing their jobs now and then. Check the litre now how much. I don’t know why diesel is up like that.”

The Mineral Resources and Energy Department says diesel and illuminating paraffin increases are due to shortage supply and lower exports from Russia, which is a major exporter of distillate fuel. Illuminating paraffin, which is used by poorer households increased by 79. 6c a litre.

The Department’s Robert Maake says, “LP Gas will increase by 69c per KG and the main reason for these adjustments are as follows the average international product prices for petrol decreased, while diesel increase because of shortage in the market, remember the sanctions in Russia meant that diesel from Russia will not go into the international market. So there is still a shortage there. And on the other hand, the Minister approved the annual transport adjustments in line with the NERSA pipeline tariff determination.”