The petrol and diesel price increases mean cash-strapped South African consumers will fork out more for goods and services on top of not having electricity for most of the day, as Eskom confirmed Stage 6 load shedding on Tuesday.
In what has been described as the steepest hike in petrol prices in recent years – petrol will now cost R1.71 more per litre and R2.84 more per litre for diesel.
Mineral Resources and Energy Minister Gwede Mantashe announced on Monday the adjustment of fuel prices based on current local and international factors that will take effect at at midnight.
Mantashe said the hikes were due to higher international oil costs and the rand exchange rate.
In a statement, Mantashe said: “The average Brent Crude oil price increased from 79.75 US Dollars (USD) to 84.78 USD during the period under review, because of tightening supply resulting from production cuts by Saudi Arabia.
“The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to high prices of petrol as a result of low inventories and refinery outages, which affected the production of blending components used in summer grade petrol making it more expensive to produce. Diesel and paraffin prices increased because of lower shipments of Russia’s Urals crude oil which is rich in middle distillates, as well as rising demand of middle distillates ahead of the winter season in the Northern Hemisphere.
LPGas increased because of higher prices of Propane and Butane,” the statement read.
The Automobile Association (AA) said the hikes to petrol prices are the highest since July last year, while the increases to diesel prices are record hikes.
“While the Rand has weakened on average against the Greenback in August, it’s not a major contributor to the expected increases – that falls squarely on rising international oil prices,” said the AA.
The Association said the increases to the fuel prices – especially to diesel – will have negative consequences for all consumers as higher input costs will be recovered through higher prices at the till.
“Motorists will certainly feel the pinch in terms of higher prices at the pumps but consumers across the board can expect higher prices to all goods and services because of these hikes. In this environment we reiterate our advice to motorists that they should keep their vehicles in good mechanical condition and their tyres inflated according to manufacturer’s specifications to ensure optimal fuel usage.
“Avoiding heavy traffic, not overloading the vehicle, and minimising driving where possible are other measures to decrease fuel consumption,” said the AA.
Cash-strapped consumers and motorists said they were already buckling under the cost of living and these increases would have a ripple effect on the daily cost of living.
Kuils River resident, Ash-Leigh Ockhuis said: “What I’m concerned about is how there’s no one regulating the rising costs. Where are the laws to regulate hikes knowing that we are still a developing country.
At this rate we will never be developed.”
Chezlin Februarie said: “SA needs to remove the Road Accident Fund and all other levies it has on the fuels or reduce it.”
Meanwhile, a dark week awaits South Africans as Eskom announced stage 6 load shedding indefinitely.
The power utility blamed this on the increase in generation planned maintenance, and the loss of a further two generation units on Monday.
“Overnight, a further two units at Lethabo and Matla power stations will need to be shutdown for urgent repairs. Eskom will publish another update should any significant changes occur.
Breakdowns are currently at 16 210MW of generating capacity while the capacity out of service for planned maintenance is 5 894MW.
Since Sunday, a generating unit each at Kriel and Medupi power stations was taken offline for repairs. In the same period a generating unit at Arnot, Kendal, Kriel and Lethabo power stations were returned to service.
The delay in returning to service a generating unit each at Hendrina and Tutuka power stations is also contributing to the current capacity constraints.”
Cape Times