The fuel levy hikes and price increases will push the petrol price over R17/ℓ as from midnight.
Economists warned early in the year that a surge in global oil prices – up more than 30% so far in 2021 – coupled with a weaker rand and the introduction of fuel taxes would mean increased costs for South Africans at the pumps.
While there is little control over the external factors that control the fuel price – the dollar price of the product on world markets multiplied by the US$/R exchange rate – it is the internal factors such as rand-based retail and oil company marketing margins, transport costs and taxes and levies may be reconsidered to assist financially struggling South Africans. Internal cost factors make up almost 60% of the fuel price.
As from midnight the fuel and the Road Accident Fund levies on both petrol and diesel increase by respectively 16.0 c/ℓ and 11.0 c/ℓ. These levy hikes are not doing ordinary South Africans any good in terms of balancing their household budgets. Why go through with the levy increase when the South African Revenue Service announced an unexpected extra R38 billion in revenues collected for the year ending March 2021?
UASA is deeply concerned by the continuous fuel price increases leaving workers in financial distress as they have to chip in more for their basic needs. The increase will be passed on to the consumer who will be forced to pay more for their basic needs.
The price hike for illuminating paraffin of 35c/ℓ will leave South Africans who have no access to electricity reeling as they depend on paraffin for household use and heating purposes. With winter around the corner they will feel the bite of more than the cold.
UASA encourages its members and all other South Africans to do the best they can during these trying times by pulling their belts even tighter and saving what they can.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.