Fuel prices set to soar in South Africa

Both grades of diesel namely Diesel 0.05% and 0.005% Sulphur will increase by a whopping R1.24 a litre.

Consumers are in for a shock at the pumps as the petrol price is set to rise by between 99 cents and a rand as of Wednesday.

The Department of Energy (DoE) on Monday announced that a litre of petrol 93 (ULP and LRP) will rise by 99 cents while that of 95 (ULP and LRP) will increase by R1.

This means that as of Wednesday a litre of 95 will cost motorists R17.08 from R16.08 in Gauteng.

Both grades of diesel namely Diesel 0.05% and 0.005% Sulphur will increase by a whopping R1.24 a litre.

The price of Illuminating Paraffin (wholesale) will rise by R1.04 cents a litre while that of Illuminating Paraffin (SMNRP) will increase by R1.39 cents per litre.

The Maximum Retail Price for LPGAS will increase by R1.79 cents per kilogram.

For the month under review the department said the rand depreciated on average against the US Dollar, adding that the current fuel adjustments are due to international factors.

“The international prices of petroleum products increased on average during the period under review. This was in line with the higher crude oil prices and the weaker Rand against the US Dollar.

“The current fuel price adjustments are due mainly to the international factors, namely, the weaker Rand and higher crude oil prices. Geopolitical tensions are having a very negative impact on crude oil prices and consequently refined product prices globally,” said the department.

In September, the fuel price remained unchanged following Minister Jeff Radebe’s announcement of a 4.9 cents a litre increase in the retail margin of petrol.

At the time it was announced that the 4.9 cent increase will be ring-fenced for the wages of the forecourt staff. The 4.9 cents a litre salary increase is in line with the Motor Industry Bargaining Council (MIBCO) agreement of 18 November 2016.

In its statement ahead of the release of the petrol price last week, the Automobile Association (AA) said the petrol price hike would be the biggest seen in the country’s history.

“They are the biggest in South African history. We estimate this increase could extract a further R2.5 billion a month in transport costs from the economy,” said the AA on Thursday. 

(With inputs from South African Government press release)