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The Automobile Association of South Africa says the massive fuel increases announced on Saturday will have a sharp and immediate effect on the poor, and a long-term impact on inflation.
The AA was commenting after the Department of Minerals and Energy said both grades of petrol will increase by R1.46/ per litre, diesel will increase between R1.44/l and R1.48/l and illuminating paraffin will increase by R1.21/l.
These kick in on Wednesday.
“For the first time in history 95 octane petrol inland will rise above R21 a litre, and by a significant margin,” the AA said.
The Association noted that as of Wednesday, this fuel will cost R21.60/l while at the coast it will cost R20.88/l, the first time it has breached the R20/l level.
“Significantly, the price of illuminating paraffin will also rise to new highs with this fuel costing R13.18/l inland and R12.36/l at the coast. This fuel is used extensively in poorer communities for heating, cooking and lighting, and will be in higher demand as the country moves from a hot summer into a more moderate autumn over the next few weeks.”
“These increases will certainly impact on every single South African given the reliance the country has on fuels for transportation, manufacturing and in the agricultural sector,” the AA said.
The increases for March are mainly attributable to rising international petroleum prices as a result of Russia’s invasion of Ukraine and would have been more severe had the Rand not stabilised against the US Dollar in the last few weeks.
The Rand showed positive movement against the US currency and shaved some negativity off the final adjusted prices.
The AA says the outlook for April remains unclear and Russia’s military action in Ukraine could push international oil prices higher which will again impact locally.
