South African motorists have been struck hard by fuel price increases in 2021 and are now paying over 40% more for petrol and diesel than at the start of 2021. According to data from the Automobile Association, the price of unleaded 93 petrol increased by 40.16%, unleaded 95 petrol jumped 40.73%, 50ppm diesel surged 43.94%, and 500ppm diesel climbed 44.11%
These significant increases are the opposite of what happened in 2020. Between January 2020 and December 2020, the prices of these same four fuel types dropped by an average of around 12.5%
That was due to numerous strict Covid-19 lockdowns across the world, which strangled demand for fuel and forced oil prices down as the movement of people was limited to curb the spread of the virus.
In 2021, many countries partially lifted their lockdowns, and economic activity picked up pace as more people were vaccinated against Covid-19 and healthcare facilities became better equipped to deal with cases.
This increased demand for fuel. But the OPEC+ countries, which control much of the world’s oil reserves, have refused to increase production. This led to a surge in the Brent crude oil price, from around $54.77 per barrel in January 2021 to $81.54 in December 2021.
Locally, the government slapped motorists with more fuel-related taxes and the rand weakened, further contributing to the price increases. Civil action groups have called on the government to reduce taxes or introduce a cap on the fuel price to minimise its impact on consumers, many of whom are still suffering from the dire financial effects of Covid-19 on their livelihoods.
Labour union Solidarity has also demanded that the government completely deregulate all retail and wholesale petrol and diesel prices, as it believes this could increase competition between fuel stations and bring down prices.
To put the increases into real terms, you can compare the price of filling a tank in December 2021 to January 2021.
| Price of filling up car | |||
| Size of car’s tank | January 2021 | December 2021 | Increase |
| Unleaded 95 petrol — inland | |||
| 45 litres | R668.70 | R913.05 | R244.35 |
| 60 litres | R891.60 | R1,217.40 | R325.80 |
| 80 litres | R1,188.80 | R1,623.20 | R434.40 |
| Unleaded 95 petrol — coast | |||
| 45 litres | R637.20 | R880.65 | R243.45 |
| 60 litres | R849.60 | R1,174.20 | R324.60 |
| 80 litres | R1,132.80 | R1,565.60 | R432.80 |
A 45-litre tank which cost R668.70 to fill with unleaded 95 petrol inland at the start of the year now costs R913.05 — an increase of R244.35. The increases are even more substantial on larger tanks in SUVs or bakkies.
Source: mybroadband
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