Fuel prices head above R30 per litre as motorists count the cost

Motorists will have to dig deeper into their pockets from Wednesday, with most South Africans set to more than R30 a litre for fuel for the first time. The latest increase will hit already stretched household budgets hard, with IOL calculations showing that even an entry-level vehicle could cost more than R1,000 extra for fuel compare with March for motorists travelling around 2,000km a month. Month-end data from the Central Energy Fund shows petrol price increases of around R3.08 for 93 Unleaded and R3.29 for 95 Unleaded, while diesel is looking set to rise by between R2.80 for 500ppm and R3.15 in the case of 50ppm. At this stage, it is looking unlikely that the government will intervene with temporary tax relief measures, as it did in April this year, when the General Fuel Levy was cut by at least R3.00 per litre for two months. Last month, Mineral and Petroleum Resources Minister Gwede Mantashe stated that there were no immediate plans to cushion households and businesses from rising fuel costs. Following the increases, which are due to take effect on Wednesday, October 7, motorists can expect to pay around R29.23 for a litre of 95 Unleaded petrol at the coast and R30.10 in Gauteng, where 93 is expected to retail for around R29.94. This is assuming that no relief measures are announced and that the two petrol grades are averaged out to R3.18 per litre. Prices of 50ppm diesel could also exceed R34 at the coast and R35 inland once retail margins have been factored in. A small car with average consumption of 5.5 litres per 100km would have cost you around R1.11 per kilometre in fuel costs in March this year, but by September that would have risen to R1.47 per kilometre. If October’s projections ring true, that number will swell to R1.65. It is estimated that the average South African motorist drives around 1,500km to 1,800km per month. If you are driving 1,500km in a month in a small car such as a Suzuki Swift, that would have cost you R1,666 in fuel bills back in March, but that would have risen to R2,208 by September and will likely peak at R2,470 in October. In an SUV such as the Chery Tiggo, assuming consumption of 8.0 l/100km, your fuel costs would have risen from R2,423 (March) to R3,211 (September) to R3,593 (October). In the Toyota Hilux example, at 9.0 l/100km, 1,500km per month would have risen from R2,849 (March) to R5,760 (September) to R6,327 (October). That’s almost R2,000 in the space of seven months. Oil prices remain elevated largely because the war in the Middle East has raised fears of disruptions to global crude supplies and shipping. The Strait of Hormuz is a particular concern because a significant share of the world’s oil passes through the narrow waterway, while attacks or heightened tensions in the region can also increase insurance, shipping and supply-risk costs. Cape Argus