Johannesburg-One year after the first case of Covid-19 was reported in South Africa on March 5, 2020, what was the roller coaster like? Most South Africans haven’t traveled much, but fuel prices are still affecting our sentiment, plunging again and rising due to fluctuations in oil prices and local currencies.
On Wednesday, March 3, drivers were hit by yet another price increase, with a liter of 95 unleaded gasoline (ULP) priced at R15.62 on the coast and R16.32 on the inland, making it more commonly used. 93 unleaded gasoline is R16.15. This is a sharp rise from R11.52, where South Africans paid 95 ULP liters on the coast following the collapse of the Covid-related oil market in May 2020.
Since then, oil prices have risen as Brent crude oil has been trading in the shade for less than $ 64 a barrel, boosting the global economy-believing it plummeted to around $ 20 at the height of Covid. Please-19 crises in early 2020.
But South African drivers and consumers do feel a pinch in fuel prices, but historically, how exactly have local fuel prices changed? We have collected data from the Automobile Association to see how prices have changed over the last decade. Fuel price index On that website, and it makes some interesting reading.
* AA data provided
Close to the highest price ever
As you can see, the price of 95 unleaded gasoline on the coast rose from R9.18 in March 2011 to R15.62 in March 2021, and the price of 93ULP inland rose from R9.27 to R16.15. .. However, the current price is not the highest ever, as 93 ULP reached R16.85 in October 2018 during the last oil price hike.
How about the diesel price?
It’s a bit difficult to draw a picture of diesel, as the energy sector has only announced wholesale prices for this fuel type, but due to its value, the cost of low sulfur diesel on the coast is R8. It rose from 71 to R13.58. March 2021. This is a much lower percentage (56%) than the gasoline hike that reached 70%.
But how do these rising gasoline prices compare to general inflation?
Obtained the price of unleaded gasoline 93 (R9.27) in March 2011 and adjusted the inflation using the inflation rate of the Annual Consumer Price Index (CPI), resulting in the price in March 2021 being R15.15. became. One rand more accurately than necessary when simply adjusted according to consumer prices. Of course, in reality, the image is much more complicated than that.
Taxes that put pressure on drivers
Besides the volatile oil and currency markets, there are many other factors that influence fuel prices, the elephant in the room here is the fuel tax, which increases every year.
It is set to pinch consumers again in April after it was announced last month that Treasury Minister Tito Mboweni would increase fuel taxes by a total of 27 cents. It consists of a 15 cents increase in general fuel tax per liter, a road accident fund tax increase of 11 cents and a carbon fuel tax increase of 1 cent.
As a result, the general fuel tax will be raised from the current R3.77 to R3.92, and the road accident fund tax will be raised from R2.07 to R2.18.
Without these taxes, consider fuel to be R6.10 cheaper.
Here’s how South Africa’s fuel prices have changed over the last decade.
Source link Here’s how South Africa’s fuel prices have changed over the last decade.