By Annisa Essack
02:11:2021

Midnight Tuesday, 2 November will see the price of petrol go up by R1.21 per litre and R 1.48 for diesel. The cost of a litre of petrol inland will cost R19.50 and a litre of diesel R17.23.

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

The increases will see fuel prices reach record highs across the board as of Wednesday.

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

• Petrol: one hundred and twenty-one cents per litre increase (this includes both 93 and 95 ULP & LRP)
• Diesel (0.05% and 0.005% sulphur): one hundred and forty-eight point two cents per litre increase;
• Illuminating Paraffin (wholesale): one hundred and forty-five cents per litre increase;
• Maximum LPGas Retail Price: two hundred and ninety cents per kilogram increase;

The Automobile Association’s spokesperson Layton Beard announced that at least R6,11 of this price goes toward taxes. He also attributed the fuel price hike to the Rand/Dollar exchange rate, coupled with rising international oil prices.

Last week the AA, warned of a significant increase but one that was slightly more optimistic than the announced increases. It also warned of the “catastrophic” impact a hefty price increase would have on the citizens and economy of the country. Their estimate then was 99 cents per litre.

Last week, economist Phelisa Nkomo said a fuel hike of this magnitude would affect several sectors of the economy. However,  the expected increase is expected to have a dire impact on the agriculture industry, as planting season is on the horizon and large amounts of diesel will be used.

She warned that the increase could further delay economic recovery, and it’s an additional burden to the economy and will increase the cost of doing business.