Petrol Price Increases for South Africans on Wednesday

8 months ago 3418
Sourced from the South African

The price of both 93 and 95 unleaded and lead replacement petrol will increase by 4 cents (ZAR) per litre in South Africa on Wednesday, according to an announcement made by the country’s Department of Mineral Resources and Energy.

In contrast, diesel prices will decrease by 15.22 cents per litre for 0.05% sulphur and 14.22 cents per litre for 0.005% sulphur. Paraffin will drop by 15 cents per litre, reports Media24 based on the department’s announcement on Tuesday.

For South Africa, petrol prices are determined based on the price of oil, as well as the strength of the rand – given that SA must buy oil in US dollars. This latest rise in petrol prices is due to a depreciation of the rand, on average, against the dollar during the period under review when compared to the previous one.

Last week, calculations by the Central Energy Fund showed that at the current levels of the rand-dollar exchange rates and oil prices, both diesel and fuel prices are expected to be cut in September.

However, the department said that the implementation of a slate levy also added to September’s prices. A slate levy is a mechanism imposed by the South African petroleum industry to finance under-recovery.

The slate levy imposition saw an increase of 8.78 cents per litre implemented into the price structures of petrol and diesel.

Another contribution to the price increases is the approval by Mineral Resource and Energy Minister Gwede Mantashe of a 5.7 cents per litre increase in the price structure of the petroleum-derived liquid to accommodate wage increases for forecourt employees in line with the Motor Industry Bargaining Council.

Petrol Prices Affected by Recent Unrest in SA

Last month, the Automobile Association (AA) of South Africa said new data suggested that petrol prices in the country would increase by a huge 87 cents to the litre.

“Fuel prices were already trending higher before the widespread looting and unrest of the past few days. But now, the daily rand-US dollar exchange rate has spiked from R14.35 to nearly R14.80 since 12 June,” the AA stated.

This came as the fuel industry was  ‘hammered from all sides’ during the weeklong unrest that gripped the country over a week in July.


By Luis Monzon
Follow Luis Monzon on Twitter
Follow IT News Africa on Twitter

Source Article