/ 2 March 2007

Bad news for motorists as petrol price set to rise

South Africa’s retail petrol prices will rise by 24 cents a litre from March 7 after a spike in global fuel prices over the past month, the government said on Friday.

The retail price of 95 unleaded petrol in Gauteng province, which includes the financial hub of Johannesburg, will increase to R5,99 a litre, the Department of Minerals and Energy said in a statement.

The price of the same grade of petrol on the coast will climb to R5,75.

Rising domestic fuel costs have been highlighted as one of the key drivers of South African inflation, as they make up about 4,7% of the CPIX (Consumer Price Index excluding interest rates on mortgage bonds) index targeted by the central bank for monetary policy.

The wholesale price of diesel with a 0,05% sulphur content will rise 10 cents a litre, while diesel with a 0,005% sulphur content will go up 8 cents a litre.

The wholesale price of illuminating paraffin — a fuel source for many poor South Africans — will increase by 10 cents a litre. The single maximum national retail price of paraffin will increase by 13 cents. — Reuters