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AA Says Fuel Price Crises Needs To Be Addressed

vuyi on February 17, 2022

By H&H Admin

Government needs to find a definitive solution to the ever-increasing fuel costs; and they need to do so quickly.

The Automobile Association (AA), says Government must act quickly to find ways to mitigate against rising fuel costs which are negatively impacting on all consumers in the country. One way to do this is through a review of the current fuel pricing model.

“Our economy is closely linked to the fuel price; it is a major input cost in the manufacturing, retailing and agricultural sectors. We have noted before that a review of the current structure of the fuel price, as well as an audit of all the elements which comprise the fuel price, should be done sooner rather than later. We therefore call on the Minister of Finance to initiate such a review during his Budget Speech on 23 February,” says the AA.

In addition, the Association again urges the Minister not to increase the fuel levies which are part of the fuel price.

“We know all too well of the economic challenges facing the country, and of the importance of the revenue raised through the two main levies. We are also aware that, as was the case last year, delivering a Budget in the current economic environment is tricky and difficult and that the pressure to ease government’s financial burden is immense. However, increasing the levels of the General Fuel and Road Accident levies will be counter-productive as this will impact mostly on the poorest of the poor,” says the Association.

The General Fuel Levy is currently pegged at R3.93 per litre (up from R3.77 in 2021) and the RAF levy at R2.18 per litres (up from R2.07 in 2021). Combined they add R6.11 to every litre of petrol and diesel sold in the country. Any adjustments announced by the Minister in the February Budget Speech are implemented annually in April.

Neighbouring countries who buy fuel directly from South Africa do not add these taxes to their fuel pricing, making their fuels cheaper than it is in the country which supplies them.

2021 saw fuel prices reach record levels and they are again touching those levels despite a decrease to fuel prices in January. The Association says any adjustments to the collection rates of these levies will have severe consequences for consumers and they should not be altered.

“Our country faces enormous and complex economic challenges. High fuel prices are adding to these challenges and instead of accepting the current model, we must seek solutions that benefit consumers, not place them in more financial distress. One immediate solution for us, for instance, is to review the funding of the poorly managed Road Accident Fund (RAF). Our reliance on the RAF is a direct result of South Africa’s poor road safety and that’s where more attention needs to be given for a long-term solution,” urges the AA.

Source: The Automobile Association of South Africa

Fuel hits record highs in SA – breaches R18/l

vuyi on August 3, 2021

The price of all fuel will, from midnight tonight (3 August), hit record highs across the country, outstripping by some margin the priciest fuel has ever been in South Africa. According to the Automobile Association (AA) fuel first hit record highs in April when 95 ULP in Gauteng was priced at R17.32 a litre, and R16.61 at the coast. Record highs were again recorded in July with the price pegged at R17.39 inland, and R16.67 at the cost.

The last time fuel was priced above R17/l was in October/November 2018 when the price reached R17.08 for 95 ULP in Gauteng. In the same months a litre of fuel was priced at R16,49 at the coast, the priciest it had ever been before.

However, these figures pale against the R18.30/l (Gauteng) and R17.58/l (coast) which come into effect for August. Petrol 95 ULP is now 23.15% more expensive than it was in January in Gauteng, and 24.15% more expensive at the coast. Diesel is between 20.31% and 21.13% more expensive in Gauteng and the coast compared to January numbers. The biggest shock is the steep increases to illuminating paraffin prices; a litre of paraffin in Gauteng is now 30.31% more expensive than it was in January and 33.84% more expensive at the coast than in the beginning of the year.

The AA says given the fluidity of the two key factors which influence the local fuel price – the Rand/US Dollar exchange rate and international petroleum product prices – it’s impossible to forecast the trajectory of future fuel price movements in the coming months.

June fuel forecast: Good news on Petrol but not such good news on Diesel

vuyi on May 28, 2021

The Automobile Association (AA) is forecasting that petrol users are set for some month-end relief at the pumps.

The Association is predicting that petrol will be 11 cents a litre cheaper in June. Diesel, meanwhile, is set to increase by about 22 cents a litre and illuminating paraffin by 21 cents.

“The Rand continued to strengthen against the US dollar throughout May, while international oil prices remained mostly flat. But the sharp spike in oil at the start of the month is still spilling over into the data, with the prices of refined diesel having seen a bigger impact than petrol,” notes the AA.

The AA says this will be disappointing news for transport companies who rely on diesel to power their fleets.

“It will also not be welcomed by citizens who use illuminating paraffin for cooking, lighting, and especially heating during the winter months,” says the AA.

Don’t be left stranded – plan ahead for car maintenance

vuyi on October 27, 2020

Too many motorists have a ‘it won’t ever happen to me’ attitude when it comes to their vehicles.
– David Chard, Managing Director of AA Warranties

Replacing a part on a vehicle – major or minor – could be an expensive undertaking, one that many South Africans aren’t aware of. Besides the cost of the actual part or parts, many don’t consider that replacement costs will also include labour which push costs up even higher.

“Too many motorists have a: ‘it won’t ever happen to me’ attitude when it comes to their vehicles. There’s no insurance on the vehicle, and service and maintenance plans are not a priority,” says David Chard, Managing Director of AA Warranties.

David says too many motorists believe that if there is any work to be done on their vehicle, they’ll be able to pay for it out of pocket.

“This almost never ends well. What you budget for a part and for labour, is often out of step with what parts cost and what repairers will charge for their labour. This is not being dramatic, but a reality based on years of experience and of customer horror stories. We’ve seen many people having to scrape together money to repair a vehicle because they need it for work purposes, only to later have to go through the whole exercise again,” he explains.

According to data from AA Warranties collected between February 2018 and January 2020, batteries, water pumps, clutch kits, turbo assembly kits, alternators, and compressor units are among the parts which fail most on vehicles. Radiators, starter motors, complete engines, megatronic units, injectors, and control arms are also on this list.

Parts aren’t cheap and replacement costs could run into tens of thousands of Rands when labour is added
– DAVID CHARD, MANAGING DIRECTOR OF AA WARRANTIES

The data from AA Warranties shows that the average repair prices of some parts, such as bearings, valve block assembly units, and pistons, range from around R21 000 to R30 000. The data also points out that two of the most common expenses claimed for – complete engines and complete gearboxes – are also among the most expensive items, again highlighting the need for proper cover should they need to be replaced.

“Parts aren’t cheap and replacement costs could run into tens of thousands of Rands when labour is added. For this reason extended warranties have become a necessity, and should not be thought of as luxury or grudge purchases,” David says.

He explains that an extended warranty offers a lifeline to motorists when they need it most, and ensures the vehicle can be operational again far quicker than if the owner first has to raise a lot of money to have it repaired. He says an added benefit is that some of these warranties are available on a pay-as-you-go basis, meaning buyers can purchase them on a monthly basis and not only when cars are changing hands at a dealership.

In tough economic times people keep their vehicles for longer periods and therefore need to ensure they are running for longer
– DAVID CHARD, MANAGING DIRECTOR OF AA WARRANTIES

David says a mechanical warranty will cover mechanical failures or breakdown of parts, but will typically not cover scheduled services or wear and tear (as service or maintenance plans do). Instead, they cover the risk of parts failing. Like the other products, they are often included by the manufacturer on new cars, but can be extended or replaced with another equivalent once their initial term has expired.

David says that these extension or replacement products on expiry of manufacturer ones are especially useful, and important.

“In tough economic times people keep their vehicles for longer periods and therefore need to ensure they are running for longer. An extended warranty is an ideal product to ensure it is kept in good working order, and also prevents you from having that shock repair bill once off,” he concludes.

Article courtesy of AASA

10 Engine parts which should be checked frequently in high-mileage cars

vuyi on October 1, 2020

Due to turbulent economic times, exacerbated by the Covid-19 crisis, many South Africans are keeping their cars for longer.

The more people keep their cars for longer the more high-mileage cars there are on the roads. This results in a higher safety risk for all due to increased chances of mechanical failure, as well as financial risk to owners whose vehicles are out of warranty. Research by the AA shows 90% of South Africans say they are keeping their cars for longer, with just over 40% keeping their cars for between five and 10 years.

The following list of parts that are more likely to fail on higher mileage vehicles and should be frequently inspected and maintained:

1. Wheel bearings: The wheel bearing can disintegrate and cause the hub assembly to detach from the vehicle. Literally, the wheel coming off, resulting in no steering control.

Warning signs: A shudder in the steering wheel during braking or cornering is an early warning. A good shake of the wheel top to bottom with the wheel jacked up off the ground will indicate a slight knocking feel or sound as well.

2. Starter motors: Bearings wear out over time, causing increased effort to turn the engine and, very quickly, a flat battery.

Warning signs: The engine will turn sluggishly and take time to start, with symptoms similar to those of a flat battery, even when the battery is still charged.

3. Oil pumps: Failure means insufficient lubricant to the engine, parts seizing/engine failure.

Warning signs: The oil pressure gauge or oil level warning light will indicate the low oil pressure. It’s imperative to stop immediately.

4. Engine & gearbox mountings: Failure results in the engine and gearbox not being kept in their correct position/ alignment, causing damage to engine and gearbox parts.

Warning signs: Engine – a loud knocking sound or vibration on start-up and pull away. Gearbox – a knocking sound or vibration during pull away and gear changes.

5. Shock absorbers: Failure will cause an inability to efficiently control the vehicle. Generally designed for a service life of approximately 80,000 km.

Warning signs: Poor ride quality. Reduced directional stability, increased braking distance, nosediving when stopping, poor handling and increased tyre and brake wear. Fluid leaking from the shock absorbers.

6. CV joints: The CV can collapse, causing the vehicle not to move and require removal and replacement. It’s best to replace CV joints on both sides of the vehicle.

Warning signs: A loud clacking sound will be heard at low speed when turning sharply.

7. Clutches: A slipping clutch will not allow the gearbox to engage fully with the engine, leaving limited or no drive. Poor driving skills, such as riding the clutch, make a clutch wear faster.

Warning signs: Shuddering on pull away, the engine revs without the vehicle accelerating.

8. Engine and gearbox seals: Failure leads to loss of lubricant and engine or gearbox seizure.

Warning signs: Oil leaks from the front or rear of the engine, or rear of the gearbox. High oil consumption. Oil dripping onto the road surface. Total loss of lubricant.

9. Alternators: Failure means the battery and electrical system won’t be kept at the necessary charge, leading to electrical failure.

Warning signs: Loud screeching noise from the alternator if its bearings are failing. The vehicle’s charge/battery light may be on constantly. The vehicle may also struggle to start.

10. Water pumps: Failure will result in insufficient circulation of the coolant in the engine, causing the engine to overheat and, if not rectified, engine failure.

Warning signs: Elevated temperature reading on the temperature gauge. Signs of water leakage at the front of the engine.

This is a broad guideline of things that more commonly go wrong, but there are, of course, quite a few more systems that could fail, even on newer vehicles.

A good extended or pre-owned mechanical warranty is a smart investment as it gives you the opportunity to be fully prepared for non-wear and tear damage to your vehicle’s engine, transmission, drive train, electrical system, turbo assembly and more. It can also help you out of a pickle when it comes to a rental vehicle and/or accommodation when you’re stranded far from home.

Extract from an article first published by the RMI

Drunk driving amendment misses the mark – AA

vuyi on August 27, 2020

The AA is proposing that the 0.05% limit be reduced to 0.02% which is in place in many countries.

Changing traffic laws relating to drink driving is meaningless and will be ineffective if current laws that regulate alcohol and driving are not properly implemented and enforced first. This is the view of the Automobile Association (AA) following the announcement tonight by Transport Minister Fikile Mbalula on the proposed changes to the legal Blood Alcohol Concentration (BAC) limit for drivers to be reduced to zero percent.

The Association says drinking and driving can be more effectively combated by reducing the allowable alcohol limits for drivers, and that the courts should impose tougher sentences on offenders. The current enforcement of drunk drivers will not stop those who regularly exceed the limits because there are simply no consequences for their actions. The AA says a zero BAC limit is not going to change this behaviour.

Reducing the blood alcohol limit to zero will not solve the problem of road deaths in South Africa if it is not supported by a thorough, scientific diagnosis of the problem of drink driving…
– Automobile association

Although South Africa’s current Blood Alcohol Concentration (BAC) limit of 0.05% is not out of line with world standards, the crisis on South Africa’s roads demands a tougher approach. The AA is proposing that the 0.05% limit be reduced to 0.02% which is in place in many countries.

The AA notes that the proposed move to reduce the legal limit to zero does not take into consideration the fact that some medications such as cough syrups may contain alcohol. In these cases drivers may find themselves with criminal records for taking one dose of this medication when it will have no material effect on their driving ability.

“Reducing the blood alcohol limit to zero will not solve the problem of road deaths in South Africa if it is not supported by a thorough, scientific diagnosis of the problem of drink driving with proper statistics which back such a move. Behavioural change is needed to solve this problem and that requires proper enforcement of existing laws, and more intensive education of the dangers of drunk driving, both of which do not currently occur,” says the AA.

It is our view that people who drink and drive will not alter their behaviour because there are no consequences…
– AUTOMOBILE ASSOCIATION

The AA says current analyses of drunk driving in South Africa are fragmented and disparate, with no conclusive findings besides those which call for greater research on the matter, a move the AA supports.

“But we cannot have a situation where the government is guessing to what extent alcohol is a contributor of road deaths with no actual plan to deal with the road safety crisis in South Africa as a whole other than to amend the law. This approach amounts to dealing with the issue of drunk driving without first addressing the issue of current enforcement and lack of education,” says the Association.

“It is our view that people who drink and drive will not alter their behaviour because there are no consequences so they’re willing to take that gamble of being caught. Ensuring proper law enforcement should be the first step before amending laws. If law enforcement doesn’t change how it operates now, how will changing the law make a difference?” asks the AA.

Pedestrian safety remains a huge concern but little is being to deal with this problem
– AUTOMOBILE ASSOCIATION

The AA says apart from these concerns, the overall safety of roads in South Africa should enjoy priority before amendments such as these are made.

“Pedestrian safety remains a huge concern but little is being to deal with this problem. Road safety requires a total approach which deals with vehicle safety, pedestrian safety, and more education on road safety,” the AA says.

The AA says it stands by its support of the wide-ranging proposals by the Traffic Law Enforcement Review Committee last year to improve traffic law enforcement in the country. It says implementing these recommendations and not focusing on one element of road safety such as drunk driving is needed to deal more effectively with the country’s annual road fatalities which it says amount to a national disaster every year.

“There are practical, workable plans on the table to improve traffic law enforcement which were compiled by experts and traffic officers themselves. Yet there are those who seem intent on focusing on one aspect of road safety – drunk driving – as a panacea for road fatalities. It is, in effect, putting a band aid on a gaping wound with the hope that it will stop the flow of blood. It won’t,” concludes the AA.

AA launches petition to extend validity period of licenses

vuyi on July 14, 2020

The Automobile Association (AA) has launched an online petition to encourage the Minister of Transport, Fikile Mbalula, to extend the validity period of vehicle licence discs and driving licence cards.

According to the Road Traffic Management Corporation (RTMC), “All Learner’s Licences, driver’s licences, motor vehicle licence discs, temporary permits, roadworthy certificates and professional driving permits (PrDPs) that expired during the period that commenced from 26 March to 31 May, are deemed valid and their validity period is further extended with 90 days from 1 June to 31 August 2020”.

However, despite this concession, the AA believes it does not take into account licences which expired after 31 May, nor the reduced capacity of Driving Licence Testing Centres (DLTCs) to renew driving licences, and the South African Post Office to process discs.

…the majority of drivers in South Africa prefer to remain compliant with the regulations, and to be on the road legally
– Willem Groenewald, AA CEO

In a letter to the Minister on 29 June, AA CEO Willem Groenewald noted that there are problems with the current legacy operational framework of the DLTCs combined with unforeseen circumstances such as COVID-19 which make it difficult for them to service drivers within that timeframe. He said that the current National Traffic Information System (NaTIS) on which people must book appointments continues to be problematic and that centres may be closed intermittently due to COVID-19.

“Our experience is that the majority of drivers in South Africa prefer to remain compliant with the regulations, and to be on the road legally. Despite the system being problematic, drivers take the necessary steps to ensure they remain within the law. However, given the current constraints on the system, many are faced with the real possibility that they may not be able to do this,” Mr Groenewald said.

An added issue, Mr Groenewald noted, was that drivers who are unable to renew discs or driving cards may have problems if they are involved in crashes as insurers may repudiate claims based on the fact that the drivers are not on the road legally.

Our proposed extension date also makes provision for the closure of DLTCs over the festive period…
– WILLEM GROENEWALD, AA CEO

The AA has called for a further extension beyond the end of August to the end of January 2021, which it says it a more feasible option to the current date of 31 August.

“Our proposed extension date also makes provision for the closure of DLTCs over the festive period, and for further potential closures as a result of COVID-19,” he noted.

In support of the Minister resolving the problems, the AA is offering its national network of agents to assist drivers renew their licences. The Association says the Minister should consider allowing third party agents – such as the AA – to perform vehicle disc and driving licence card renewal services which are currently only offered through the DLTCs and the Post Office.

It said that not only will this go a long way in dealing with the current and historical backlogs, it will also alleviate the pressure on the DLTC infrastructure going forward. The AA has not received a response from the Minister nor his office to the letter sent at the end of June. However, the AA will continue to raise this issue wherever it can in an effort to ensure the validity of licence discs, driving licence cards and other licences is extended, and that drivers can drive with peace of mind.

In this regard, the AA is launching an online petition available at: https://www.aa.co.za/petition-to-extend-the-licence through which it wants to attract signatures in support for its call to pass on to the Minister as a sign of the backing its call enjoys among the public.