/ 27 June 2008

More petrol woes for motorists

The retail price of petrol will rise between 75 cents and 81 cents a litre next week Wednesday, the Department of Minerals and Energy said on Friday.

In a statement, the department said petrol 91 unleaded (ULP) would go up by 75 cents, petrol 93 ULP and LRP (lead replacement petrol) by 79 cents, and petrol 95 ULP and LRP by 81 cents.

The wholesale price of diesel 0,05% sulphur and 0,005% sulphur would rise by 68,4 cents and the wholesale price of illuminating paraffin by 54,4 cents.

The single maximum national retail price for illuminating paraffin will go up by 73 cents a litre.

The adjustments were attributed to the average increase in international product prices of petrol, diesel and illuminating paraffin over the period May 30 2008 to June 26 2008.

Minister of Minerals and Energy Buyelwa Sonjica has also approved an increase of 5,4 cents per litre in the wholesale margin in the price structures of petrol, diesel, and illuminating paraffin effective of next Wednesday (July 2).

The average rand/dollar exchange rate weakened over this period (7,9352) compared with the previous period (7,6434).

Currently, certain liquid fuel dispensers in the country are restricted to displaying a three-digit maximum price of R9,99 per litre.

”The retail petrol prices in all pricing zones will increase to a four-digit number [i.e. more than R10,00 per litre] on July 2 2008,” said the department.

Affected dispensers will no longer be able to display the full price accurately.

The retail prices of petrol per litre on the affected pumps (dispensers that cannot display a four-digit price) will be marked at a tenth (1/10) of the official price per litre, which will be promulgated in the Government Gazette by the department.

This means that both the price-per-litre and the price-to-pay displays will need to be multiplied by ten (10) at the affected dispensers.

Decals depicting ”X10” will be attached to petrol pumps at both the price-per-litre and total-amount-to-pay indications.

The department said the retail prices of petrol in all pricing zones will be adjusted to benefit motorists, while the financial losses to the oil industry will be recorded on the cumulative over/under recovery account.

”As a result of this rounding off, the retail petrol price increases in the petrol pricing zones will differ from the retail price increases reflected.”

For example, 93 ULP and LRP in the inland area (Gauteng) will only increase by 77 cents per litre and not 79 cents. — Sapa