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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

4 Ways to Beat Rising Fuel Prices

vuyi on August 9, 2021

South Africans are facing one of their largest increases to fuel prices yet after petrol increased by 91c per litre and diesel by 55c per litre on Wednesday 4 August 2021.

It has already been a tough year for South Africans and motorists who now have to fork out much more for fuel than ever before. The fuel price increase come on the heels of a difficult economic situation due to lockdown and because of recent unrest.

The best way to reduce petrol consumption is to change your mindset which in turn will affect your driving attitude for the better. Here with a few tips to help you readjust your driving habits and save fuel.

1.       Anticipate conditions

Adopt a defensive driving style so you can anticipate changing traffic conditions before they happen. You should drive looking 12 seconds ahead of you. This will allow you to see traffic slowing ahead of you or traffic light changes well before they happen; allowing you to timeously adjust your own speed to avoid coming to a complete or sudden stop.

2.       Do not speed

Drive at speeds that suit the current conditions and avoid speeding. Reducing speed by 20kph in certain instances can reduce fuel consumption by 20%. Often speed is also accompanied by fast lane changes, sudden acceleration and harsh braking. Not only does this increase fuel consumption but it also costs you more in maintenance. Increasing your speed will only make minimal, if any, difference to trip times.

3.       Plan ahead

Plan each journey to save fuel. It can help you avoid traffic jams; help you choose the most fuel-efficient routes and avoid leaving too little time. It will also help you avoid rushing which makes driving fuel efficiently almost impossible.

4. Drive nicely 

As mentioned already, inconsiderate driving increases fuel consumption. This includes unnecessary lane changes, harsh acceleration and speeding. Instead, keep to the road rules and follow techniques such as keeping your engine revs between 2500 and 3000rpm. This can result in a saving of up to 20% in fuel consumption.

Use fuel-savings tips to reduce the impact of high fuel prices and get the most out of each full tank.

Source: MasterDrive

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.

Are You Ready for the New Fuel Prices?

vuyi on July 2, 2021

The Department of Energy has published the latest fuel price adjustments for July 2021, showing a hike in prices across the board.

This is how fuel prices will change from midnight on Wednesday, 7 July 2021:

  • Petrol 95: increase of 26 cents per litre;
  • Petrol 93: increase of 29 cents per litre;
  • Diesel 0.05%: increase of 42 cents per litre;
  • Diesel 0.005%: increase of 41 cents per litre;
  • Illuminating Paraffin: increase of 36 cents per litre.

Tips to Stay Ahead of Fuel Price Hikes

vuyi on May 31, 2021

With the fuel price in South Africa hovering at an all-time high, most drivers are open to any suggestions on how to get a little bit more from their tank.

With the fuel price in South Africa hovering at an all-time high, most drivers are open to any suggestions on how to get a little bit more from their tank. While it seems motorists might get some relief from these record-high prices in June 2021, it is always worthwhile driving as fuel efficiently as possible.

Here are five tips to make your tank go quite a bit further.

1. Plan your travelling

One of the best ways to save fuel is to drive less. This can be done by proper planning, for example instead of going to the mall every day, rather allocate a bit more time and go once a week. If you need to travel a fair distance for appointments, try to group them with other stops that you need to make in the same area. Where possible avoid rush hour, as travelling during peak hour means a long journey in terms of time and your car will use more fuel. Leaving timeously will also mean you are less rushed and driving in a relaxed manner is a sure way of saving fuel.

2. Change your driving style

The way you drive is the biggest contributor to the amount of fuel it uses. Avoid speeding between intersections and excessively revving your vehicle. A smooth, gradual, acceleration technique is the most economical way to drive, as is maintaining a constant speed on the highway and sticking to the speed limit.

3. Limit your use of the air conditioning

Your car’s air conditioner can contribute as much as 5% to your fuel bill, especially when stationary. It is a good idea to turn it off when you are standing still and switch it back on once you are up to speed.

4. Check your tyre pressures regularly

Underinflated tyres are a huge contributor to unnecessary fuel consumption. Tyres should be checked regularly and inflated according to the manufacturer’s specifications for the amount of load you are carrying. The correct pressures are normally found in the doorframe or fuel flap of your vehicle or in the owner’s manual.

5. Lose that extra weight

Extra weight in your vehicle will also push up its fuel consumption, therefore you should avoid any unnecessary weight by removing non-essential items. The same goes for unnecessary accessories like roof racks and bicycle carriers that not only add weight but also disrupt the aerodynamic properties of your vehicle.

While these tips will go a long way in saving you a few Rands, having the right vehicle for the job is the easiest way to save money. If you happen to be car-shopping, investing in a smaller, more fuel-efficient vehicle is the easiest way to save money.

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.

Major fuel price hike coming up in February

vuyi on February 1, 2021

South African motorists are in for a massive fuel price increase from the beginning of this month.

According to data from the Central Energy Fund, motorists can expect to pay 82c more for petrol, 59c for diesel and 60c for illuminating paraffin.  This will bring the price of a litre of 95 Unleaded petrol to R14.90 at the coast and R15.68 inland. A litre of 93 ULP petrol will now cost R15.51.

The Automobile Association notes that even though the Rand has performed significantly better in the past few months than it did during the peak of the Covid-19 crises, oil prices have steadily risen. 

“Unfortunately, our mid-month concerns over the advancing oil prices have been borne out in practise. There has been a slow, but steady, rise in the price of oil which is likely to cause ongoing pain at the pumps, explains the AA.