Sat Oct 22 11:07:08 CAT 2016

Another petrol hike

By unknown | Mar 31, 2008 | COMMENTS [ 0 ]

Robert Laing

Robert Laing

Motorists face a more than 8percent leap in petrol prices tomorrow at midnight for the second month in a row.

The price of 93octane commonly used inland is going up by 67c to R8,78 a litre. Filling up at the coast with 95octane is going up by 66c to R8,67.

This month sees fuel prices hit by the triple whammy of the rand weakening against the dollar, international oil prices rising, and the increased fuel taxes announced in Finance Minister Trevor Manuel's recent budget taking effect.

The retail price of petrol is set each month by the government. The department of minerals and energy sets the price according to octane level, making leaded and lead replacement petrol the same price.

Inland drivers pay more for fuel to cover the government's pipeline levy though much of the petrol supplied is produced nearby by Sasol.

The government allows limited competition in the diesel market in that it fixes the wholesale price and allows garages to set their own retail margin.

The wholesale price of diesel is shooting up by R1,30.

This takes the price that garages pay for diesel inland to R9,40 for low sulphur fuel required by newer Sports Utility Vehicles.

The retail price of low sulphur petrol used by trucks is likely to go over R10 a litre with the inland wholesale price hitting R8,14.

April's 67c hike follows last month's 61c a litre increase on all octane levels.


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