MegaBanner-Right

MegaBanner-Left

LeaderBoad-Right

LeaderBoard-Left

Home » Industry News » Energy department under fire for announcing fuel price hike just before polls closed

Energy department under fire for announcing fuel price hike just before polls closed

As reported, South African motorists are facing record fuel price increases from Wednesday, November 03, with both grades of petrol set to rise by R1.21, diesel by R1.48 and illuminated paraffin by R1.45.

However, aspects relating to the timing of the announcement by the Department of Mineral Resources and Energy (DMRE) have come into question.

The Automobile Association says it is deeply concerned about the fact that the announcement by the DMRE was headlined “FOR RELEASE ON 28 OCTOBER 2021” yet it was only issued 15 minutes before the election polls closed on Monday night, November 01.

“When a media statement is datelined four days prior to an election but delayed until 15 minutes before the polls close, it is difficult to conclude otherwise than that this bad news was deliberately suppressed to protect the incumbent government,” the AA said. “We will be writing to Parliament to demand an explanation for the delay.”

The association said it would also continue to push for clarity on the additional ‘Slate Levy’ that was imposed on the fuel price. The Slate Levy is used to claw back losses from fuel price under-recoveries when the cumulative petrol and diesel slate balances exceed R250 million.

The AA says the November fuel price hike comes as a result of a perfect storm of international demand imbalances for crude oil as well as rising refinery costs and rand weakness, and the future prognosis does not look positive.

“With oil demand buoyant and supply lagging, the ongoing issues with natural gas cost and supply, and refining costs a worry, we see little cause for optimism. Added to this is the volatile Rand/US dollar exchange rate and users of liquid fuels in South Africa are probably in for a rough ride in the next three to six months,” the AA added.

Petrol prices have increased by around 40% since January, with 95 Unleaded hitting R19.54 a litre in the inland regions.

Click here for a more detailed look at the November fuel price increases and how much more you’ll pay per tank.

IOL Motoring

 

SourceIOL
To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

AES: Energy assessments provide powerful insights which ‘fuel’ change

WHEN a production or manufacturing facility is built, everything is new and operating optimally. Over time, equipment deteriorates - or modifications are made with the...

Bleak outlook for fuel prices in March – AA

Unaudited data from the Central Energy Fund (CEF) is indicating yet another significant increase in the price of both grades of petrol, diesel, and...

MUST READ

Cape Town CBD remains a good place for business

Retail, BPO, and financial sectors see surge in new businesses opening doors in 2023 November marks National Entrepreneurship Month across the world, including in South...

RECOMMENDED

Cape Business News
Follow us on Social Media