The Department of Mineral Resources and Energy (DMRE) says it made a mistake regarding the new petrol price. On Monday the 29th of November, the department announced that the fuel price would increase by 81 cents per liter from the first of December. This was later adjusted to 75 cents per litre.
“The 6 cents difference is due to the fact that the adjustment of wages for service station workers had already been implemented in September 2021. Although it is for the very first time that such an error has occurred in the history of basic fuel price determination in South Africa, the DMRE profusely apologises for the inconvenience caused. The rest of the fuel prices are correct,” the department said in a statement on Wednesday.
The announcement brings little respite to South African motorists who are feeling the pinch of recent petrol price hikes. The cost per litre of petrol, 93 and 95, now stands at over R20 for inland provinces and almost R20 for coastal regions.
It’s not just motorists feeling the squeeze; taxi commuters can expect taxi fees to increase.
Experts warn that high fuel prices will have a severe impact on food prices, further impoverishing those who are struggling with food security. Speaking to 702 Radio, Paul Makube FNB Business Senior Agricultural Economist, spoke to 702 Talk Radio warned South African farmers will be severely impacted by the fuel price increases.
“Farmers are having to deal with higher crude oil prices… higher prices of diesel. A higher oil price also impacts on the price of agrochemicals; fertilizers, pesticides and herbicides. All of these are derivatives of crude oil” he said.
The petrol price increase came amidst an announcement by Statistics South Africa announced that over half a million South Africans lost their jobs in the third quarter of 2021.
“The results of the Quarterly Labour Force Survey (QLFS) for the third quarter of 2021 show that the number of employed persons decreased by 660 000 in the third quarter of 2021 to 14,3 million,” StatsSA announced.
