Motorists to dig deep as fuel price increases
Motorists will be hit hard once again on Tuesday midnight when all grades of petrol go up by 54 cents with the energy department citing local and international factors for the hike in the price of fuel.
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs like shipping costs,” the department said.
“The rand on average has strengthened slightly against the US dollar from R14,3871 to R14,1401 per dollar. The settling of contagion risks from emerging markets provided a foundation for the rand's strengthening trend. This decreased the contribution on the basic fuel price of petrol, diesel and illuminating paraffin by about 13 cents a litre.”
It added that the average Brent Crude oil price increased from $66.03 to $70.82 per barrel during the period under review.
“The oil prices rose to the highest level in almost six months as the US government decided to eliminate sanction waivers that allowed buyers to import Iranian crude oil. Geopolitical issues in the Middle East and Venezuela have provided added upward impetus to oil as output curbs by the Organisation of Petroleum Exporting Countries and its allies to keep supplies in check.”
Based on these factors, the department said all grades of petrol will rise by 54 cents a litre. Diesel with (0.05% sulphur) will increase by just a cent while one with 0.005% sulphur will remain unchanged.
The wholesale price of Illuminating paraffin will increase by 3 cents a litre while (SMNRP) single maximum national retail price for illuminating paraffin will rise by 4 cents a litre. The maximum retail price for liquid petroleum gas will surge by 84 cents per kilogram.