JOHANNESBURG – South African motorists are being asked by the Automobile Association to prepare themselves for a massive fuel price increase in November 2021. The warning comes after data from the Central Energy Fund revealed that the global energy crisis and the rands’ continuous decline will result in fuel prices increasing in the country.
According to BusinessTech, the data shows that petrol could increase by 95c to 98c per litre while diesel prices are expected to increase to R1.42 per litre. The price of illuminating paraffin is expected to increase by R1.42 per litre.
The data showed that there is a significant under-recovery when it comes to the prices of petrol and diesel which has also been attributed to the increase of prices. With the new increases, the Automobile Association says petrol would likely sell for over R20 a litre before the end of the year, according to a report by EWN.
With the northern Hemisphere entering winter, the Automobile Association says there is a slim chance that oil prices will stabilise. This is despite President Joe Biden calling on the Organization of the Petroleum Exporting Countries Plus to increase oil supply so that oil prices can stabilise. The OPEC+ is yet to respond to Biden’s request.
South Africans react to possible fuel increases Social media users were less than enthused about the impending fuel price increase. Briefly News put together some of their comments. Here’s what they had to say:
@Ntrulubisi said: “Mara what bull is this. E-tolls, massive fuel price increases. Toll gates, everything is increasing except for our salaries. Flippen 30%. Ridiculous”
@JasonHol84 said: “And once it hits R20 it’s not dropping any time soon, viva ANC viva #VoetsekANC”
@six42am said: “And with ZAR predicted to go to R20 to the $USD next year, things are going to get much worse in SA. Thank you ANC #unemployment #vatincrease”
@MkhosiGP said: “The taxes on essentials such as energy outweighs the citizens’ intention to see economic growth. The biggest stumble block to our collective desires is government. It’s time for a change. Gov role must change from making laws to implementers.”
Looming fuel crisis raises concerns for economists:
“Time to start riding bikes” Briefly News previously reported that Chief Economist at the Efficient Group (a JSE-listed financial services company) Dawie Roodt, has revealed that the rising petrol price in Mzansi and the global energy crisis will soon add pressure on South Africans.
Similarly, Chief Executive of Debt Rescue Neil Roets stated that SA’s excessive fuel costs are one of the most important causes of diesel increasing by 69% and petrol by 85% since 2011. Broken down, this translates to a 50-litre tank of petrol costing over R915 versus it being under R500, 10 years ago. Roets explained that the country is entering the last quarter of the year and customers are now looking forward to the holiday season. However, abrupt and intense price increases are expected across the board.
Read the full article here: https://briefly.co.za/business-economy/112164-petrol-prices-expected-increase-by-more-than-95-cents/