Hefty petrol price increase tonight

Tonight the petrol price in South Africa will take a considerable step upwards in what the Automobile Association (AA) expects to be a series of fuel price hikes in the new year.

The AA said in December that unaudited month-end fuel price data released by the Central Energy Fund showed substantial price increases for all types of fuel were on the cards.

 “The Rand has weakened against the US dollar since mid-December, while international petroleum prices have continued their upward march,” the association said.

“However, despite the Rand’s recent weakness, it was comparatively strong in the first half of December, and the anticipated fuel price rise is entirely attributable to petroleum strength.”

The AA observed that if international petroleum prices had remained unchanged from November, South African fuel prices would actually have dropped by around two cents a litre in the new year.

This was not to be however, and the Department of Energy announced that fuel would go up as of January 4.

Based on current local and international factors, the fuel prices for January 2017 will be adjusted as follows:

1. Petrol (93 ULP and LRP): 50.00c/l increase.

2. Petrol (95 ULP and LRP): 48.00c/l increase.

3. Diesel (0.05% Sulphur): 39.00c/l increase.

4. Diesel (0.005% Sulphur): 37.00c/l increase.

5. Wholesale price of Illuminating Paraffin: 43.00c/l increase.

6. SMNRP of Illuminating Paraffin: 58.00c/l increase.

7. Maximum Retail Price of LPGas: 106.00c/kg increase.

According to the department, the main reasons for the increase are the slight strengthening of the Rand versus the US Dollar, the increase in the prices of crude oil, the increase in the prices of petrol, diesel and illuminating paraffin, on average, in the international markets, and adjustment to the Octane Differential between 95 and 93 Octane.