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While the Russian invasion of Ukraine may feel thousands of kilometres away, locals are feeling the pinch as fuel prices soar to record highs.
With the most recent fuel increase of R2,43 per litre of petrol and R1,10 per litre of diesel South Africans are having to tighten their belts just a little more.
Now at a staggering R23,52 per litre of petrol and over R22 per litre of diesel (depending where you fill up), fuel stations were jam-packed on Tuesday 31 May with motorists trying to fill-up on the lower cost one last time.
People’s Post polled consumers to find out their feelings on the fuel increases and how they are making ends meet amid a social media storm of outrage surrounding the continued increases.
“This is getting out of hand,” said Athlone resident June Phillips. “We live far from our jobs, are calling for us to come back to the offices and the price of petrol keeps increasing while our salaries stay the same “I am disgusted that the government cannot do anything about this.”
Another resident, Marlin September, said he and others were already doing all they can to save costs.
“In 2019 we started a carpool for some of the people in our office building,” he said. “It helps to share the load of the fuel, but now, we just can’t keep up. We are needing to increase our contributions every month and it is really impacting our pockets.”
Travelling from Mitchell’s Plain to the CBD, September said the unreliable state of public transport forced them to find alternatives.
“We can’t rely on taxis as they strike at any time,” he said. “Buses are packed with people trying to get to the city and trains don’t even run here. We have to bite the bullet and pay.”
September added that the cost of petrol previously had not impacted on their monthly rates because it increased in manageable increments.
“This is just ridiculous. I have been driving for 15 years and cannot remember a time when we needed to fork out this much.”
Other commuters on social media stated they were “unhappy with the prices”, but would pay because they had no other choice.
Octavia August said her family spent much of their time travelling for both school and work. She shared the general sentiment that life in South Africa is just expensive.
For Aubrey, a driver who asked not to be identified for fear of victimisation, he feared the recent announcement of no pay increase at the company he worked for, spelling disaster for his family.
“Unemployment is so high we are made to feel we must be grateful just to have a job. As with many others, I was told there would be no increases this year because of general costs for companies to operate in. We are all struggling, and because we need to work we must accept it. I know of so many people who are not getting increases, but everything goes up – petrol, food, rent, everything. Paying more for one thing means something else will need to be cut, and we are already on the bare minimum.”
According to a joint statement by the departments of national treasury and mineral resources and energy, government gave consumers a lifeline by extending the temporary reduction in fuel levy, introduced in April.
This cuts R1,50 from the general fuel price extended for the month of June. At present the departments intend to reintroduce half the fuel levy – 75c – from July. The temporary relief will then be withdrawn in August.
The initial relief instituted in April was funded by a liquidation of a portion of the strategic crude oil reserves held by the country, says the statement. This amounts to billions.
More recently, Speaker of the National Assembly requested the tabling of a two-month proposal for the extension of the reduction in the general fuel levy.
“The revenue foregone from the extension of the relief is estimated at R4,5 billion. Unlike the previous announcement, this proposal is expected to have an impact on the fiscal framework as it will not be fully funded through a sale of strategic oil stocks,” reads the statement.
Premier Alan Winde, however, expressed his concern over the rising costs and overall impact on households.
“I share the real concern of our province’s residents and business owners that fuel prices are expected to reach a high of R25. These escalating prices will make it more expensive to live, eat, and travel in South Africa, and it will undoubtedly hit our most vulnerable residents the hardest,” he says in a statement.
“It is for this reason that I join calls for urgent action by the national government to limit the impact on residents in South Africa, by scrapping the general fuel levy.
“The reality is that the Covid-19 pandemic has already resulted in rising unemployment, poverty and hunger. South Africans can simply not afford to carry these increases.
“We must take every step possible to protect our recovery so that we claw back the jobs and deliver hope in the Western Cape.”
Daylin Mitchell, provincial minister for mobility, shares Winde’s concerns.
“This increase is a big blow not only for motorists but for commuters who are already struggling to reach economic opportunities, especially in light of the failing rail system and rolling blackouts. The increase in fuel not only affects motorists, but public transport users and businesses who are finding it difficult to recover after being hit hard by the pandemic,” he says.
Mitchell says the taxi industry recently announced that a taxi fare increase was on the cards as petrol costs and Covid-19 pressures mount.
“I commend Golden Arrow Bus Services for its decision not to increase fares at this stage to provide passengers with some small sense of relief amidst the price increase the company is facing,” says Mitchell.
Gwede Mantashe, national minister for mineral resources and energy, said in a statement that the general price increase of Brent Crude oil from $104,78 to $115 is impacted by several factors, including driving habits in the Northern Hemisphere, European Union discussions regarding increase of crude oil throughput by refiners to take advantage of high refining margins.
While the scrapping of the general fuel levy has not been tabled, Mantashe says government has decided to scrap the Demand Side Management Levy (DSML).
“As at the end of April 2022, the cumulative slate amounted to a negative balance for petrol and diesel of R11,99 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, there is no change on the Slate Levy to be implemented into the price structures of petrol and diesel with effect from the 1st of June 2022. The slate levy applicable remains 52,62 c/l,” reads a statement.
The removal of the DSML from the price structure of Unleaded Petrol (ULP) 95 octane in the inland market was implemented on Wednesday 1 June.
“The levy of 10,00 c/l was introduced in the price structures of 95 ULP that is sold in the inland market during 2005. The purpose of the levy was to discourage motorists from wasting octane by using 95 ULP instead of 93 ULP in their vehicles. The termination and removal of the DMSL of 10,00 c/l will provide financial relief to motorists whose vehicles utilise ULP 95 Octane in the inland market.”
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