The Automobile Association says fuel prices will be through the roof in December, with the price of oil playing almost no part in this.
This comes after the fuel increase announcement by the Department of Mineral Resources and Energy (DMRE) on Monday, 29 November.
The DMRE said the petrol price would increase by 81 cents a litre. Diesel would rise by 75 cents a litre and paraffin by 42 cents a litre.
“Internationally, oil prices have pulled back from their recent highs, and Brent Crude is currently trading around $75 a barrel. Most of this month's under-recovery is because of the weakening of the rand against the US dollar,” said the AA.
The organisation says that while the recent travel bans related to the Omicron variant of Covid-19 had caused a spike in the exchange rate, the underlying weakness was a continuation of a trend that began with the mid-year riots and looting.
"In under six months, South Africa has slipped from R13.40 to the US dollar in June to its current price, pegged at around R16.15."
The association says the year-on-year increases since December 2020 have been astronomical.
“Petrol has increased by more than 40 percent, diesel by around 44 percent, and illuminating paraffin by more than 70 percent.
“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,” said the AA.
“In the last two months alone, petrol has increased by more than R2 a litre, diesel by between R2.21 and R2.23 a litre and illuminating paraffin by R1.83 a litre.
“These massive increases, we believe, strengthen our call for a review of the fuel price structure, and for a recalculation of all the elements that comprise the fuel price.”
BUSINESS REPORT ONLINE