BusinessLive reports that fuel prices went through the roof on Wednesday, but the price of oil played almost no part.
This is according to the Automobile Association (AA), which was commenting on price increases announced by the Department of Mineral Resources & Energy (DMRE) on Monday and which come into effect at midnight on Tuesday. The association said the increases again pointed to the need for an urgent investigation and recalculation of the current fuel pricing model and its existing elements. Petrol across all grades rose by 81c/l, crashing through the R20/l barrier for the first time to reach R20.13 for a litre of 93ULP and R20.35 for 95ULP. Diesel will rise by as much as 75c/l, and illuminating paraffin by 42c/l. “This price disaster is entirely home grown. Internationally, oil prices have pulled back from their recent highs and Brent crude is currently trading around $75 a barrel. The majority of this month’s under-recovery is because of the weakening of the rand against the US dollar,” the AA noted. It said that while the rand had lost value against the dollar after the discovery of the Omicron variant, the underlying weakness was a continuation of a trend that began with the midyear riots and looting. “The increases year on year since December 2020 are astronomical. Petrol has increased by more than 40%, diesel by around 44%, and illuminating paraffin by more than 70%. Wages and salaries have not kept pace with these heavy increases, and consumers will undoubtedly be under more financial pressure because of the knock-on effects on other products,” the AA commented.
- Read the full original of the report in the above regard at BusinessLive
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