AA says December fuel price disaster is ‘entirely home grown’

Business Live reports that the Automobile Association says the increases point to the need for an urgent investigation and recalculation of the fuel pricing model. Fuel prices will be through the roof in December, with the price of oil playing almost no part. This is according to the Automobile Association (AA), which was commenting on price increases announced by the department of mineral resources & energy (DMRE) on Monday, and which come into effect at midnight on Tuesday.

The association says the increases again point to the need for an urgent investigation and recalculation of the current fuel pricing model and its existing elements. “This price disaster is entirely home grown. Internationally, oil prices have pulled back from their recent highs and Brent crude is currently trading around $75 a barrel. The majority of this month’s under-recovery is because of the weakening of the rand against the US dollar,” the AA said. The AA said that while the rand had lost value against the dollar after the discovery of the Omicron variant, the underlying weakness was a continuation of a trend that began with the midyear riots and looting. “The increases year on year since December 2020 are astronomical. Petrol has increased by more than 40%, diesel by around 44%, and illuminating paraffin by more than 70%. 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,” the AA said.  



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SAUS threatens to make all higher learning institutes ungovernable

SABC News reports that the South African Union of Students (SAUS) has threatened to make all institutions of higher learning ungovernable next year, should the National Student Financial Aid Scheme (NSFAS) not review its proposal that starting next year, students would need to pass 75% of their module to qualify for funding. Currently, students need to pass at least 50% of […]