The Automobile Association (AA) is accusing the Department of Mineral Resources and Energy (DMRE) of delaying the announcement of a sharp fuel price increase until after the local elections.

In an unusual move, the DMRE announced the fuel hikes around 21:00 on Monday night, as polls were closing. Fuel price changes are typically announced on the last Friday of a month, during business hours.

In a press release dated 28 October 2021 (but only released on 1 November), the DMRE announced a steep 7% hike in the petrol price, which climbed by R1.21 a litre on Wednesday.

The inland price at the pumps has now reached R19.54 for a litre of unleaded 95 petrol. The diesel price climbed by R1.48 a litre, and illuminating paraffin jumped by R1.45 a litre. Petrol is now 40% more expensive than 11 months ago, as the oil price rallied to its highest level in three years, while the rand has been weakening.

The AA says it is deeply concerned by the delayed release of the price hike announcement.

"When a media statement is datelined four days prior to an election but delayed until 15 minutes before the polls close, it is difficult to conclude otherwise than that this bad news was deliberately suppressed to protect the incumbent government," the AA said in a statement. "We will be writing to Parliament to demand an explanation for the delay."

The AA also says it will continue to push for answers on how the levies incorporated into the fuel price are being allocated and managed.

This was after a 2.2c hike (from 13.16 c/l to 15.36 c/l) in the so-called Slate levy this week. The levy is paid to fuel companies to compensate them for imbalances that build up over time due to the way that the basic fuel price is calculated. As at end-September, these companies were owed almost R1.7-billion

"At the current level is clearly insufficient to reduce the deficit and protect South African fuel users from the interest burden on this amount," the AA said.

"The fuel price has a direct bearing on an already weak economy as it continues to drive up inflation on essential consumer goods and affects every South African. As we have said many times in the past, all the elements that comprise the fuel must be fully interrogated to determine if they are necessary. Given that the fuel prices are now at record highs, such a review is overdue,” says the AA.

"With oil demand buoyant and supply lagging, the ongoing issues with natural gas cost and supply, and refining costs a worry, we see little cause for optimism. Added to this is the volatile rand/US dollar exchange rate and users of liquid fuels in South Africa are probably in for a rough ride in the next three to six months,"  it added.

The AA expects that the petrol price will close in on R20 a litre in the run-up to Christmas.