The Fuel Price Hike Thread

New Diesel price will do more damage

The 24 cents per litre increase in the diesel price will do more damage than the petrol price hike, the Cape Chamber of Commerce and Industry said on Monday.

"Business is particularly concerned because diesel is a basic input cost for agriculture and transport," chamber president Janine Myburgh said in a statement.

"It affects the price of every item of food in the supermarket."

She said private motorists would be able to reduce their travelling to save fuel but there was no escape for businesses.

The energy department announced last week that petrol would increase by 39 cents a litre and the wholesale price of all grades of diesel by 24.20 cents a litre this month.

The chamber's transport portfolio committee chairman Peter Hugo said the energy white paper of 1998 had recommended that taxes on diesel be reduced.

At the time, diesel was the cheaper fuel and according to the white paper this price differential promoted the use of diesel, which was a more efficient fuel and lowered input costs for productive activities.

However, the situation had worsened in the last 16 years and diesel became more expensive, despite it being cheaper to produce.

"This should make us review the way the diesel price is calculated and also the various taxes on diesel," he said.

"The government thought there was a good case to reduce taxes on diesel in 1998 and we think there is an even better case now."


Source : Sapa /gq/fg/hdw/th/ks
Date : 03 Feb 2014 16:13
 
More petrol, rate hikes on cards [News24]

Cape Town – With the petrol price set to increase by 39 cents per litre and diesel by 24c per litre at midnight on Tuesday – the highest level ever in South Africa - economists are already predicting even more increases in March.

At the current rand/dollar exchange rate a further petrol price hike of around 20 cents a litre can be expected, according to economist Dawie Roodt.

“Fortunately, the international oil price has been marginally lower in recent weeks. Unless the rand depreciates further, this should be the last major increase in the petrol price,” he told Fin24.

“I do, however, expect the rand to remain quite volatile in coming months, which may result in further increases, but the worst is probably behind us.”

By year end he expects the rand to regain some lost ground, which will lead to a lower petrol price.

“These price increases are having a devastating effect on the consumer,” said Roodt.

“We have had e-tolls, interest rate increases, electricity prices will go up again and food prices are also likely to accelerate later this year.”

Economist Mike Schussler told Fin24 that the petrol price problem this time round was simply due to the rand.

“Obviously next month the rand will also be the major player. The rand is even more volatile, so next month it is likely that we will get another increase in the price of petrol,” said Schussler.

“In April a petrol price increase is also very likely, because the actual taxes usually go up with the national budget. There is usually about a 20c increase either in the road tax or road accident fund contribution.”

On a positive note, Schussler said SA might get lucky with the oil price during the year if Iran gets back to supplying oil in terms of a political agreement.

The problem of the rand would still remain though. He pointed out that for the last three months the petrol price increases were in large part due to the rand.

“It is very likely that petrol will become a greater driver of inflation. So these petrol price increases will play a major role in the actual inflation rate this year,” he said.

“That is why I think (Reserve Bank governor) Gill Marcus would have to raise interest rates again in March.”

If the rand's depreciation continues unchecked, a petrol price of R16 per litre is possible in the medium term, the Automobile Association said on Monday.

"On December 27, a dollar cost R10.35. By January 27 it cost R11.20.

"Meanwhile, international petroleum prices have ticked up slightly since our last review of fuel price trends in mid-January, so it's a double whammy for motorists," the AA said in a statement.

http://www.fin24.com/Economy/More-petrol-rate-hikes-on-cards-20140204
 
OrbitalDawn said:
See, what a responsible government would be doing is everything in its power to lessen the impact on its citizens. Not shafting them with another de-facto tax.
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our government is out to screw us over...
 
Thank goodness for the new bike :) But this is getting really bad!! Screw you cANCer, thanks for running this once great country into the ground!!
 
Slootvreter said:
Unless it's a paid off vehicle, purchasing something will cost you more than the savings in fuel.
Click to expand...

One really has to do the sums.

If one has a paid off 4l Ford Ranger and you drive 2500km per month and it costs you R5000 in petrol, you might be able to buy a Citroen C1 (or the Peugeot or Toyota models) and the car payment and the fuel payment can cost you R4000 per month. So you save a R1000.

So one has to do the sums based on circumstances and see if it makes sense or not.
 
Well I can breathe a sigh of relief. Have a bike that does just over 27 km/l through the city. Car used to cost me R37 per day to get to work and back (30 km trip), bike costs me R20 per day and I travel further than I did with the car (40 km trip).
 
Hefty fuel hike looms

Durban -Motorists could expect another “substantial” fuel price hike next month, said the Automobile Association (AA) of South Africa.

Their prediction was based on a mid-month analysis of fuel price data.

Yesterday the AA said the exchange rate had eased to around R11.10 to the US dollarin the first half of the month, but international petroleum prices had increased.

“Motorists could be forking out substantially more for fuel,” the AA said.

Reggie Sibiya, chief executive of the Fuel Retailers Association, said current estimates suggested the petrol price would increase by 32 cents a litre and diesel by 26 cents a litre.

He could not say by how much illuminating paraffin would increase.

Earlier this month the fuel price reached a record high of R13.59 a litre for 95-octane unleaded petrol.

Economist Clive Coetzee said yesterday that next week’s budget speech would probably see fuel levies and taxes increased, but looking ahead after next month, he did not expect more significant fuel price hikes in the near future. - Mercury
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http://www.iol.co.za/business/news/hefty-fuel-hike-looms-1.1650012
 
Another petrol price hike on the cards

CAPE TOWN - There’s even more bad news for motorists as fuel prices are expected to increase yet again.

Some economists predict hikes of between 30 and 35 cents.

This comes on the back of last month’s petrol price hike of 39 cents a litre.

Economist Dawie Roodt says the increase in the oil price and the weak rand are to blame.

“The rand has been coming back a little bit last week or so, but not enough to prevent an increase in petrol price. And that’s not all, the petrol price is likely to be increased again by the Finance Minister. He’ll add to the fuel levy and the road accident fund, so prepare for quite a hefty increase.”

(Edited by Leeto M Khoza)
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http://ewn.co.za/2014/02/27/Petrol-price-likely-to-increase
 
I need to start distilling my own ethanol I'm pretty sure I could do it at a third of the price of petrol.
 
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