People Against Petrol and Paraffin Price Increases ( PAPPI) says next month’s fuel price increases will not be as hefty as previously expected.
The Central Energy Fund has released new data, indicating that next Wednesday’s hikes won’t be as high as earlier predictions due to the falling oil price and a firming rand.
PAPPI’s National Convenor Visvin Reddy says, “The Central Energy Fund (CEF) announced that on Wednesday next week, 95 octane petrol is going to increase by R1.84 per litre. 93 is expected to climb by R1.76 per litre.”
“Diesel [will increase] by between R2.98 per litre and R3.14 per litre while illuminating paraffin will increase by R2.51 per litre. The increases were supposed to have been double but because the crude oil prices have dropped from 140 a barrel to 110, it has had a bit of a cushioning effect.”
Last week, the South African Petroleum Industry Association (SAPIA) warned that if the ongoing rapid petrol price increases continue, this will have a huge negative impact on the distribution of essential goods.
SAPIA told Parliament that if petrol increases above the current oil regulatory mechanism which sets the basic fuel price, the security of the supply chain in distributing the required products will be threatened.
Industry stakeholders have cited the Russia-Ukraine conflict as one of the factors that are already impacting the petrol price increase.
SAPIA Executive Director Fani Tshifularo says there is a need to look at how the current method used in determining the petrol price increase can be revised.
Wits University’s School of Economics and Finance’s Lumkile Mondi says South Africa remains vulnerable to petrol increases because it no longer has reserves the way it did during apartheid: