Petrol price increase

The fuel price is expected to increase by about R3.81 per litre on Wednesday when the general fuel levy of R1.50 is added to the price, taking a litre of ...

The fuel price is expected to increase by about R3.81 per litre on Wednesday when the general fuel levy of R1.50 is added to the price, taking a litre of petrol to about R25. The fuel price is expected to increase by about R3.81 per litre on Wednesday when the general fuel levy of R1.50 is added to the price, taking a litre of petrol to about R25.

With the petrol price expected to jump this week to a new record high, and by the highest amount yet, it is clear that the government is confronted with ...

To add to the immorality of this decision, one of the trading companies which was allowed to buy the stocks was Glencore, a mining giant freshly fined by the US for bribery in several African countries. The main cause of course is Russia’s invasion of Ukraine, which our government has vehemently failed to condemn. As tempers are rising, the government will have to be extremely careful not to make an already difficult situation even worse. It was also foreseeable that the full fuel levy would have to be restored. While those who own cars have a louder voice in our society, it will be at this moment that the problem will really bite. Unfortunately, for millions of people that is no longer an option as the railway system in particular has been literally destroyed in many cities and towns across the land. All this reveals how important the fuel levy has become to our tax take. While the immediate causes are rooted in events over which the government has no control, it is also obvious that it is not participating in any condemnation of those who created this situation in the first place. This reveals how much the fuel levy reduction cost the government in only two months. To make up for the shortfall, officials said they would sell off some strategic fuel fund reserves. The price of fuel also has a multiplier effect, affecting, among other matters, food prices, which in a country like ours means never being far from a disaster. Additionally, none of the options available appears to be sustainable and the spillover anger might become a point of grave danger.

South Africans are being warned to brace themselves as this week's astronomically fuel price hike won't be the last for this year.

If the government does not increase the price, then the whole economic edifice will come tumbling down,” explained South African Petroleum Industry Association‘s (Sapia) head of strategic projects and economic regulations Kevin Baart. “Government has to increase (or decrease) the price in line with the Basic Fuel Price (BFP) working rules. The price of petrol is expected to move past the R25 per litre mark towards the end of the year.

A proposal to alleviate rising fuel prices is expected following a meeting between the Treasury and department of minerals & energy at the weekend.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily. Finance minister Enoch Godongwana told Business Day during the African Development Bank (AfDB) 2022 annual meetings in Accra, Ghana, last week that the SA government was looking into a lot of proposals to mitigate the situation... The National Treasury and the department of mineral resources & energy met at the weekend to discuss options regarding fuel prices, which have been hitting highs and threatening to render SA’s fragile economy uncompetitive.

For the past two month's government has provided relief by reducing fuel levies but that comes to an end this month.

Government implemented relief on fuel levies, but that comes to an end this month. On the other hand urban areas it would make the price cheaper but in less populated areas it wouldn't help much. Then I'm afraid we are talking about a petrol price in the region of R4.00 a litre which will push up the price to about R25.00. This is the biggest increase ever.

The SA Petroleum Industry Association expects the government to this week announce whether the short-term relief measures to alleviate fuel price increases ...

In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. That is subject to an announcement which should come later today [Monday] or tomorrow.” Sapia head of projects Kevin Baart said given the steep fuel prices projected in future, “unfortunately we will have to bite the bullet”.

A steep fuel price increase next month awaits consumers, the South African Petroleum Industry Association (Sapia) said on Monday.

“What was communicated to us is that the tax exemption was for two months,” said Sapia’s executive director, Avhapfani Tshifularo. “So we’re all waiting to hear what the government’s latest stance is, because we had discussions but the official version is that there will be no extension and that the R1.50 is going to be reinstated.” Sapia’s head of strategic projects and economic regulations, Kevin Baart, said it was “very difficult” to estimate by how much prices could rise, but added that the government was bound to adjust the price in line with global prices, because to try to keep prices down was economically unsustainable. Ahead of the announcement this week from the mineral resources and energy department on the fuel price adjustment for June, Sapia said it was not aware of a possible extension of the government’s temporary reprieve on South Africa’s contentious fuel tax levy, warning that future price increases were likely.

South Africans have noticed the shelf price of many goods increasing and much of this can be attributed to the ongoing crisis in Ukraine, say analysts at…

The food oil product is also used in the production of medicine and other health products.” Crude petroleum cost 9% monthly and 65.1% annually more to import in March due to higher international commodity prices. “Motorists would have felt this at the pumps. “South Africans were set to see a further R4/litre increase in the petrol price at the start of June due to as weaker rand, higher oil prices, and the end of the two-month tax relief of R1.50/litre. “According to a survey by the Pietermaritzburg Economic Justice & Dignity (PMBEJD) group, the cost of buying a five-litre bottle of cooking oil in Johannesburg increased by 20% from February to April, and jumped by 30% in Durban over the same period.” “South Africa’s imported food products cost 5.0% m-o-m more due in part to the increase in food oil prices: sunflower oil is used in the manufacturing of diverse products, including margarine, ice cream, chocolate, canned goods and breakfast cereals, amongst many others.

The price of petrol continues to rise but commuters cannot afford a ticket hike and minibus, metered taxi and e-hailing drivers are still struggling with ...

The commission concluded that there is a skewed relationship between ridership levels and subsidy funding, which only allocates 1% of the total subsidy to the taxi industry and that covers taxi recapitalisation. We are busy consulting and we will soon make a pronouncement, but this is a resolution that came out of our highest decision-making body, which is the managing council committee.” This then pushed us from 70% ridership market share to over 80%. This clearly speaks to the important role that the taxi industry plays in the country, and yet the government is not acknowledging that,” says Malele. “The frills attached were not palatable … being asked to produce a number of things that are known will be impossible to attain. Things like having to get a tax clearance from the South African Revenue Service when they know that systems in the country are failing us dismally. COVID also hit the minibus taxi industry, which transports millions of people in South Africa every day, hard. The strain on the industry has been compounded by the pandemic, during which millions of jobs have been lost. Consequently, e-hailing drivers have been protesting largely about the lack of regulation and unfair fare structure. We really suffered at the beginning of the hard lockdown as Uber drivers.” January and February are generally tough months for business. The South African Taxi Association has said it is looking into increasing fares, given the rapid rise in the price of petrol. By the time you make R1,000, you have already spent a lot of money on petrol. Escalating fuel prices are devastating a transport industry that had barely recovered from the restrictions imposed during COVID-19 lockdowns.

The SA Petroleum Industry Association expects the government to this week announce whether the short-term relief measures to alleviate fuel price increases ...

In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. That is subject to an announcement which should come later today [Monday] or tomorrow.” Sapia head of projects Kevin Baart said given the steep fuel prices projected in future, “unfortunately we will have to bite the bullet”.

The SA Petroleum Industry Association expects the government to this week announce whether the short-term relief measures to alleviate fuel price increases ...

In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. That is subject to an announcement which should come later today [Monday] or tomorrow.” The SA Petroleum Industry Association (Sapia) expects the government to this week announce whether the short-term relief measures to alleviate fuel price increases will be made permanent as motorists brace for a possible R4/l increase in petrol prices in June.

The Democratic Alliance requested the debate on the latest pending increases, which could take the price of petrol to an unprecedented R25 per litre.

That is around R3.93 per litre.” The Democratic Alliance (DA) requested the debate on the latest pending increases, which could take the price of petrol to an unprecedented R25 per litre. The Democratic Alliance requested the debate on the latest pending increases, which could take the price of petrol to an unprecedented R25 per litre.

The high exposure of SA's basic fuel price to international factors limits government's options for introducing measures to curb steep increases.

However, there were reports on Monday night suggesting that Nosiviwe Mapisa-Nqakula, speaker of the National Assembly, had granted a special request for finance minister Enoch Godongwana to address parliament on interventions that would help soften the impact of expected fuel price hikes of almost R4/l... A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily. The department of mineral resources & energy has not yet published changes to fuel prices that are due to take effect on Wednesday, but the adjustments are expected to be “fairly steep”.

Some 50 years later and the country is about the see a potential record hike of R4 per litre for petrol on Wednesday this week. The Democratic Allianc.

The new petrol price is expected to take effect at midnight on Tuesday. South Africa faces major fuel price increase in June: ...

That will be the highest increase in recorded history. It will bring our fuel prices to extremely unaffordable prices, and this is catastrophic not only for motorists, but all South Africans.” “On Wednesday, government will increase fuel prices by over R3 per litre.

As steep rises in fuel prices loom, little can be done to alleviate the pain it will inflict on consumers and the economy, the South African Petroleum ...

Get 14 days free to read all our investigative and in-depth journalism. As steep rises in fuel prices loom, little can be done to alleviate the pain it will inflict on consumers and the economy, the South African Petroleum Industry Association (Sapia) has said. As steep rises in fuel prices loom, little can be done to alleviate the pain it will inflict on consumers and the economy, the South African Petroleum Industry Association (Sapia) has said.

There have been mounting calls for the fuel levy to be scrapped as South Africans battle to make ends meet.

South Africans are waiting to see how government will handle what many are calling the fuel price crisis. "I suspect that as we go over the next couple of weeks or months, you are going to see more demands for salaries in double digits. "The fuel levy collects about R90 billion a year for government.

South African consumers just can't get a break from the ever-rising cost of living. Adding to their woes is another fuel price hike, expected this week.

Finance Minister Enoch Godongwana and Mineral Resources and Energy Minister Gwede Mantashe are yet to make an announcement on the new price set to come into ...

Misa wants to be part of the solution because the rocketing fuel price will have a devastating impact on the 300 000 employees in the motor retail industry,” said Keyter. The poor need to receive a basic income grant so people can survive these harsh economic conditions.” People who are working are already suffering, what about the unemployed, how are they going to survive?” Activist Abraham Agulhas added: “Government is getting a lot of taxes from the fuel, they are in a position to pass regulations to mitigate an increase. “The impact will be massive because fuel is an input cost. Bureau for Economic Research economist Tracey-Lee Solomon said: “According to the oil price exchange rate, there’s a R2.42 under-recovery increase.

If the government chooses to end the levy it will be a travesty for people who are reliant on their government for support.

If government chooses to end the levy it will be a travesty for people who are reliant on their government for support. As it is, the predicted downgrade in brands, cars, houses and utilities will have a knock-on effect on our already dismal economic growth. As an organisation that sees what life is like at the coalface of living on credit, we are gravely concerned about the state of our nation and its ability to survive, let alone thrive. While the SA Reserve Bank's monetary policy committee (MPC) had little choice but to raise the repo interest rate 50 basis points in the face of rising inflation — thanks mainly to soaring food and fuel prices — this has cut into the budgets of the very consumers who are needed to keep the economy afloat. We have just emerged from the worst humanitarian crisis the world has seen since the second world war, and while the severity of the Covid-19 pandemic has decreased, it still persists. The fallout will be enormous as the price of every commodity that is transported road — groceries, clothes, toiletries — will quickly increase in cost.

The cumulative fuel price increase has added significantly to overall consumer price inflation, and a further increase in June will sustain this pressure, ...

“The fourth commercial property sub-sector that is challenged by high costs of fuel of late must surely be hotel property. So it’s an additional potential source of pressure on the office market.” “We believe that ongoing fuel price increases are a negative for an already-battling office property market.

Treasury has decided to grant an extension of the reduction in the general fuel levy, which will soften the fuel price hike on Wednesday.

At the same time, government finances are also constrained, as it battles a debt burden of R4.3 trillion. The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices. Instead, Brent crude oil was trading above $120 per barrel this week, around its highest levels in two months. But the sale will not entirely fund the extension. Treasury has decided to grant an extension of the reduction in the general fuel levy, which will soften the fuel price hike on Wednesday. - Around R6 billion of the state's strategic oil reserves were sold to fund the original levy cut - but this will not entirely fund the extension, meaning there will be a revenue loss of around R4.5 billion.

Although the government has extended a fuel price relief measure for consumers for two months, consumers will still be slapped with further petrol price ...

This is a continuation of the relief measure introduced by the government in April and May, when it sought to shield consumers from the economic stress of surging fuel prices. Combined with the fuel levy of R1.50, this would hike the price of 95 unleaded petrol by R3.92 from current levels, while 93 unleaded petrol would be R3.81 more expensive. The government is also looking at long-term measures to reduce the price of petrol. On Tuesday, 31 May, the department and National Treasury announced in a joint statement that the fuel levy would be reduced in two phases for the next two months. But the relief measure hasn’t prevented big increases in the price of petrol and diesel. And the price of illuminating paraffin will also go up – by R1,56.

Petrol and diesel prices will still see sizeable hikes on Wednesday - despite the extension of the petrol levy cut.

The petrol levy was cut by R1.50 a litre for April and May as government sought to relieve the economic stress of surging fuel prices. It said that from 1 June, the DMRE will remove the demand side management levy of 10c per litre for inland 95 ULP, and that after a review and consultation by the DMRE, "it is proposed that the basic fuel price also be decreased by 3c per litre in the coming months". But the sale will not entirely fund the extension. "Due to this significant monthly price increase, the Minister of Finance has today submitted a letter to the Speaker of the National Assembly, requesting the tabling of a two-month proposal for the extension of the reduction in the general fuel levy," the statement said. It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy (DMRE) on Tuesday afternoon. The price of 95-octane unleaded petrol will rise by R2.33 a litre on Wednesday, while 93-octane unleaded petrol will go up by R2.43 a litre, the Department of Mineral Resources and Energy announced on Tuesday.

Opposition parties such as the Democratic Alliance(DA) and Congress of the People (COPE) have decried the impact the impending R3 fuel increase will have on ...

The consequence of the crisis that the country is facing, will worsen and the unemployment figures, many workers will lose their jobs, and the crime rate will also rise,” the party said. Not a single one will be spared, rich and poor, but the poor who are already struggling to make ends meet will be the hardest hit. “South Africa is heading for a serious economic disaster with serious consequences that can lead to an uprising if the Government does not urgently intervene.