Fuel increases ‘catastrophic’
South Africans faced unprecedented price increases in October, according to the unaudited month-end fuel price data released by the Central Energy Fund (CEF).
These increases are catastrophic for South African road users. The hike is the biggest in South African history.
The major culprit is South Africa’s chaotic economic policy which has left South Africans defenceless against upticks in international oil prices.
With the Rand and oil contributing almost equally to the rises, 93 octane increased by 99 cents, 95 octane by R1 per litre, with diesel spiking by a massive R1.24.
Illuminating paraffin users also faced the shocking hike, a whopping R1.04.
Excluding months where fuel taxes were hiked, this was the largest single fuel price increase South Africa has ever experienced.
The impact inflicted on the economy by such increases may put pressure on President Ramaphosa’s recently-announced stimulus package.
The Automobile Association (AA) estimates that this increase could extract a further R2.5bn a month in transport costs from an economy that is already on the ropes. The cost of doing business will go up and consumer disposable income will shrink.
AA press release
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