Buckle up and fill up! Massive fuel price increases coming on Wednesday

The department of Mineral Resources and Energy (DMRE) has announced massive price increases for November, which will see fuel prices reach record highs across the board as of Wednesday.

At midnight on Tuesday, the price of petrol will go up by R1,21 per litre, and R1,48 for diesel. This means a litre of petrol inland will cost you R19,50 and a litre of diesel will go for R17.23.

DMRE Minister Gwede Mantashe, announced the price adjustments on Monday night.

The fuel prices for November 2021 will be adjusted as follows:

• Petrol (both 93 and 95 ULP & LRP): one hundred and twenty-one cents per litre (121.00 c/l) increase
• Diesel (0.05% and 0.005% sulphur): one hundred and forty-eight point two cents per litre (148.20 c/l) increase;
• Illuminating Paraffin (wholesale): one hundred and forty-five cents per litre (145.00 c/l) increase;
• SMNRP for IP: one hundred and ninety-three cents per litre (193.00 c/l) increase;
• Maximum LPGas Retail Price: two hundred and ninety cents per kilogram (290.00 c/kg) increase;

According to a tweet from the Automobile Association’s spokesperson Layton Beard, at least R6,11 of this price goes toward taxes.

According to Beard, the hike is the result of the Rand/Dollar exchange rate, coupled with rising international oil prices.

Last week the AA warned of the “catastrophic” impact a large price increase would have, but even their then estimate of a 99 cent per litre spike was slightly more optimistic than the announced increases.

Also Read: R20 a litre for petrol ‘is now a reality’

The expected increase is expected to have a dire effect on the agriculture industry, for whom planting season is around the corner, and sees them burn large amounts of diesel.

Economist Phelisa Nkomo last week said a fuel hike of this magnitude will have several effects on other sectors of the economy.

“This increase will delay economic recovery and it’s an additional burden to the economy and will increase cost of doing business. With increased unemployment due to Covid, declining industrial output and global decline, South Africa has lost almost two million jobs,” she said.