Petrol price to climb to R9,33

Robert Laing

Robert Laing

A quarter of the petrol price will be taxes and levies from midnight tonight when May's 55 cents a litre increase takes effect.

Tomorrow's increase includes a 20 cents a litre increase in the "slate levy", a new 1,5 cents "Incremental Inland Transport Recovery" levy, and a 2,5 cents increase in "service cost recovery".

This extra 24 cents a litre is in addition to April's six cents rise in the fuel levy plus five cents in road accident fund contributions.

The simplest way for Gauteng drivers to limit the fuel price pain is to fill up with 93 octane instead of 95. From tomorrow, the government set retail price of 93 octane will be R9,33, making it 13 cents cheaper than 95 octane inland.

Coastal drivers, who should use 95 octane, will be paying R9,22 a litre. High octane is cheaper at the coast than low octane inland because of a 14 cents "Zone differential in Gauteng".

Inland 95 octane carries an additional 10 cents "Demand Side Management Levy" introduced three years ago when leaded petrol was phased out.

The new 1,5 cents a litre inland transport recovery levy is to cover the cost of Transnet Pipelines having to use road and rail to augment its capacity until its upgrade is completed in 2010.

With petrol threatening to break the R10 a litre barrier, the South African Petrol Retailers Association (Sapra) warned that many of the country's older mechanical fuel pumps could not handle double digit prices.

To avoid the expense of converting all old pumps to digital, Sapra has requested that fuel stations be allowed to set them to a tenth of the fuel price and then multiply the bill. This requires Mineral and Energy Minister Buyelwa Sonjica's approval.

The wholesale price of inland standard sulphur diesel will go up by 71 cents to R10,09 a litre.