Rising fuel prices are a common complaint among South Africans, many of whom suffer under the extra stress that owning a car places on their wallets.
Most recently, the AA has predicted a 10c per litre increase for petrol and a 16c per litre increase for diesel.
While it had originally predicted a fuel price reduction, it had to change its verdict due to the poor performance of the rand.
This is just a taste of what is still to come, believes the AA, as the tumultuous economy is likely to result in an increased financial burden for fuel users.
“The South African economy is in a parlous state, with ongoing policy uncertainty and a growing debt burden,” the AA said.
“The country is ill-placed to weather its domestic challenges, let alone developments on the international front, and this leaves fuel users increasingly exposed to movements in the rand.”
Petrol price increases over the past decade
MyBroadband recently looked into the increase in fuel prices that has taken place over the past 10 years.
We found that fuel prices showed between a two- and three-times increase over this period, with no signs of slowing down.
This affects users across fuel types – including 93 Unleaded, 95 Unleaded, and diesel.
Because of these continued increases, which have hurt the pockets of South African fuel users, the government has considered implementing a fuel price cap.
“Government is deeply concerned by the rising cost of petrol in South Africa, which is largely caused by the rand-dollar exchange rate and the price of crude [oil],” former energy minister Jeff Radebe said.
However, a Department of Energy spokesperson told BusinessTech in April that it was still too early to comment on the possible implementation of a fuel price cap.
“The draft report is being discussed internally at the moment. The department will issue a media statement once the internal consultation is concluded,” said the spokesperson.
SA fuel prices compared to other countries
High fuel prices aren’t exclusively a local phenomenon; due to the limited sources of crude oil and the fragile political climates in regions where it is found, prices tend to fluctuate with regularity.
MyBroadband looked at the price of fuel in various other countries and compared it to local pricing.
To conduct this comparison, we used data from globalpetrolprices.com.
This data shows that South African fuel prices aren’t particularly high when compared to other countries.
Both Russia and the United States have substantially lower fuel prices than the rest of the countries included, while British and German drivers are paying more to fill up their vehicles.
The fuel prices for various countries around the world are shown below.
|International gasoline prices (as of 19 August)|
|Country||Average gasoline price per litre|
|International diesel prices (as of 19 August)|
|Country||Average diesel price per litre|