Fuel price hike of catastrophic proportions expected in November

The Automobile Association (AA) of South Africa says South Africans should brace themselves for a fuel price hike of what they are calling catastrophic proportions, in November.

Reflecting on international figures, the AA says data points to a potential 99 cents a litre increase, in the price of petrol.

Diesel and illuminating paraffin is expected to increase by approximately R1. 42 a litre.

AA spokesperson, Layton Beard says they are worried about the price increase.

“When we look at the numbers it’s very clear that increasing international petrolatum prices are driving these significant increases that are likely to occur when the price is adjusted for November. We are very worried about the fact that these increases will be significant. A rand in the case of petrol and R1.42 in diesel. This will push the prices of petrol and diesel again into record territory after we saw it was in record territory in August and September.”

Programme co-ordinator of the Pietermaritzburg Economic Justice and Dignity Group Mervyn Abrahams, says the poor will be the hardest hit by the fuel price hike.

Abrahams says the increase in the price of petrol is likely to push up food and transportation costs.

“The impact of such increases will be disastrous for low-income households and will deepen the current household affordably crisis. We have seen this year a basket of 44 foods increasing by R364 over the past 12 month period and these increases in petrol and diesel prices will lead to a further food price increase. It will also increase transport costs leaving less money for food and other expenditure. We know that it is the poorest households in South Africa that use paraffin so the situation will become dire.”

CEO of the Fuel Retailers Association, Reggie Sibiya discusses the impact of fuel hikes on retailers: 4 August 2021