Expensive fuel, expensive travel in December
THE predicted fuel price increase for December may see many unable to go home for the holidays as the cost of tickets for long-distance travel could be affected.
The Central Energy Fund announced predictions of fuel increases effective from December 7.
According to predictions by the AA, data indicates an increase in petrol and a decrease in diesel prices.
“The association says the data is indicating significant increases to petrol prices of between 97c/litre and R1.09/ litre, but a decrease of up to 34c/litre for diesel next month. Illuminating paraffin is also expected to increase by around 30c/litre.
“With these expected increases to petrol, the price of a litre of 95 ULP, for instance, will climb to just under R24/ litre, which will be way below the high of R26.74/litre seen in July, but which will still be higher than September, October and November prices. The decrease in diesel is, of course, welcome and should at least not immediately negatively impact other prices reliant on diesel as an input cost. The increase to illuminating paraffin remains a concern as it will affect the poor most.”
Though the AA said it must be noted that these are mid-month figures and are likely to change before the final adjustment for December, it is certain petrol prices will go up in December.
“Given that many people will be travelling by vehicle in December, we advise motorists to carefully plan their budgets now to ensure they have the necessary funds to cover their expenses, which may also include toll fees on certain routes,” said the AA.
The SA National Taxi Council’s
Bafana Magagula expressed frustration at these predictions. “These increases will be a pain to us. We are biting the bullet. We are very frustrated.”
Magagula lambasted the government for not being fair with the association and for failing to subsidise them. He also expressed frustration with taxi routes competing with government vehicles. Magagula warned passengers of taxi price increases this December, but said passengers would be given a week’s warning.
He warned that all the affected routes will increase by 5 to 10% this December. “If a taxi fare is currently R20, then it will increase by R1 or R2.”
The chief marketing officer of Flysafair, Kirby Gordon, said fuel increases are never good news, but flight ticket prices are informed by supply and demand, and not by the increase fuel prices.
“Flight tickets are highly commoditised and as a result are really traded on a market. What this means is that the forces of supply and demand really determine the price of tickets, so when demand is high relative to supply, we’ll get good prices. On the contrary, if supply is high and demand is low, we’ll get very low prices, no matter what the fuel price does.”
Intercape buses said fuel remains the biggest expense for any intercity coach operator and definitely has an impact on ticket fares. They have encouraged passengers to book their tickets early for their December travels “to get the best price offer”.
Vuyisa Jobela from Jobela Bus Services, whose buses specialise in long-distance travel as far as Johannesburg, Malawi, Cofimvaba, Ngcobo, Tsomo, Mthatha, Ngqamakhwe and Butterworth, has confirmed that bus fares will increase in December.
“The current ticket price from
Cape Town to Mthatha for example is R600 online, R650 via the office. It will more than likely be R800 to R850 in December.”
Cape Town residents who originated from outside the province have weighed in on the fuel cost predictions.
Tlotla Mkoatle from Cape Town said: “The drive to Matatiele will be a long and tedious journey. A one-way trip with these estimates will be R3 000. But I think I am going. My family would be disappointed if I didn’t make Christmas.”
Robert Maake, the senior manager at the Department of Energy, refused to comment.
“Unfortunately, the department does not make any predictions on the fuel prices,” he said. “I would comment once the department has issued a media statement to the public.”