The Department of Minerals and Energy said on Tuesday that it anticipates the retail price of petrol (all octane grades) will rise by 19 cents per litre (c/l) effective on May 4.
The department said the wholesale price of diesel (0,05% sulphur) could increase by 11c/l, while the wholesale price of illuminating paraffin could be raised by 23c/l.
Since the beginning of the current fuel-price review period, April 1 to 15, international crude oil and petroleum product prices remained “very volatile”.
The department added that the price of Brent crude oil increased by about $6 per barrel, from about $50 per barrel to $56 per barrel, in less than a week.
Product prices quoted at refineries in the Mediterranean area, Singapore and the Arab Gulf followed the same trend as international crude oil prices, the department pointed out.
The department said that as a result of this sharp increase in international crude oil and petroleum product prices, large unit under-recoveries were realised during the first week of the current fuel-price review period.
Although international crude oil and petroleum product prices decreased thereafter to the same levels as realised on April 1, these decreases were not substantive to neutralise the large average unit under-recoveries realised in the first week after April 1, the department noted.
It added that the weakening of the exchange rate has a negative impact on South African fuel prices, and the easing of the rand has contributed to an increase of about 7c/l in South African fuel prices. — I-Net Bridge