CAPE TOWN - South Africans have been bombarded with fuel hikes throughout the year. The Central Energy Fund has since predicted a further surge in the price of fuel and diesel.
Take a look at the highly strung behaviour of fuel throughout the year.
The Department of Energy braced motorists of the expected fuel hike on January 4. Petrol increased by between 48 cents a litre (95 octane) and 50 cents a litre (93 unleaded). Meanwhile, the cost of diesel was surged by 39 cents a litre in the case of 0.55ppm and 37 cents for 0.005ppm.
This announced increase meant that motorists would now pay R12.37 per litre of 95 Unleaded.
Adding to the blow, the Automobile Association cautioned further increases in fuel:
“If the oil-producing countries adhere to the proposed production cuts, oil prices are likely to strengthen until demand and production move back into equilibrium.
“Even a stronger rand could be overpowered by a sharp climb in the oil price, potentially meaning a succession of fuel price hikes that could impact the economy strongly over the next few months,” the association said.
Consumers were were warned of another fuel hike August for September. The price of fuel, diesel and paraffin increased the following month.
According to an analysis by Chief Economist at Rebalance Fund Managers, Chris Harmse attributed the fuel hike to the landed international price and rand exchange rate.
This has jolted the under recovery for fuel, diesel and paraffin to between 40 and 61 cents per litre since July 28.
"An under-recovery means that if the international oil price and the rand/$ exchange rate remain at their current levels, the prices for fuel will increase by those margins during the first week in September", noted Harmse.
The price of fuel has once again hit a near high, with the rise in crude oil prices. This came after the Department of Energy announced that the crude oil was under threat by Turkey.
“The average daily Brent crude oil price has increased from $52.34 to $59.22 a barrel over the past month, the highest level since June 2015. This increase is supported by a threat of Turkey to cut the crude oil being transported by a pipeline from Iraq to the outside world. Turkey is opposed to the possible independence of the Kurdistan region in Iraq", declared the Department.
A month after that the fuel price increased again. The fuel hike on November 1 saw consumers forking out more money for diesel and petrol.
With the increase of fuel by 4 cents and diesel by 23 cents for the standard 500ppm, consumers were forced to pay the following:
South Africans have recently been hit hard with another expected fuel increase. The Central Energy Fund has predicted increases to be effected in December.
The pump price for diesel in Gauteng is expected to cost R12.92 per litre, 190 cents per litre higher than last year's December pump price of R11.02.
Meanwhile, the pump price for petrol in Gauteng will increase to R14.71 per litre or an increase of 14.4% on the pump price at the beginning of December 2016.
Chief Economist at Rebalance Fund Managers, Chris Harmse observes that the fuel price will play a major role in the decision of the Monetary Policy Commission not to lower interest rates in months to come.
- BUSINESS REPORT ONLINE