Large petrol price increase expected

The next fuel increase is expected to be high due to the rand going through a bad patch and the introduction of new levies, the Energy Department said on Tuesday.

“The department will announce the increase next week, but at this stage it is speculative,” said spokesperson Bheki Khumalo of reports of an expected 50 cents per litre price rise.

However, due to fluctuation in the rand/dollar exchange rate, under-recovery will be at least 25 cents a litre for petrol and 23 cents a litre for diesel.

The petrol price is quoted in US dollars, and is influenced by international oil prices — which shift daily — the rand/dollar exchange rate and the supply and demand of the commodity.

According to the Energy Department’s website, the price paid at the pump includes the cost of transporting petroleum products to South Africa, insurance, agents’ fees, the cost of using harbour facilities to offload, and storage at terminals. Then there are inland transport costs, customs levies and retail profit margins.


Under-recoveries occur when the exchange rate is worse than planned, making dollars more expensive, which in turn costs the government more for fuel.

Other levies, announced by the minister of finance earlier this year, were due to come into effect on April 7.

They include an increase in fuel taxes of 25,5 cents a litre, which includes 7,5 cents towards a new fuel pipeline between Durban and Gauteng, and another eight cents for the Road Accident Fund, on top of the 64 cents it gets from every litre of fuel.

South Africans already have to find extra money for electricity prices increases. — Sapa

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

As opposition mounts, Zimbabwe’s president lashes out

Emmerson Mnangagwa has accused ‘dark forces’ of destabilising the country

Big retailers need to step up to the plate

To stave off a multi-generational malnutrition crisis, the food industry must work with government to provide highly nutritious foods at cost during the pandemic

Crime stats mark a bitter start to Women’s Month

We must celebrate women’s achievements this month while agitating for structural change, argues Luke Waltham

South Africa prioritises fossil fuels over clean energy in post-Covid-19 recovery packages

The country is among the G20 countries who have invested in electricity produced from coal, oil and gas at the cost of addressing climate change

Challenges and opportunities for telemedicine in Africa

Telemedicine in Africa is currently limited by the availability of basic infrastructure, but, considering the lack of doctors in rural areas, it is a vital component in addressing the continent’s healthcare needs

Fight the disease of corruption in the same way we fight the coronavirus

Gogo Dlamini, Themba Dlamini’s mother, died of Covid-19, but Mzanzi has a chance to rid the country of fraud and exploitation and instead serve ‘Gogo Dlamini’, the people of South Africa
Advertising

Vaccine trial results due in December

If successful, it will then have to be manufactured and distributed

White men still rule and earn more

Women and black people occupy only a few seats at the JSE table, the latest PwC report has found

ANC still at odds over how to tackle leaders facing...

The ANC’s top six has been mandated to work closely with its integrity committee to tackle claims of corruption against senior party members

The PPE scandal that the Treasury hasn’t touched

Many government officials have been talking tough about dealing with rampant corruption in PPE procurement but the majority won't even release names of who has benefited from the R10-billion spend
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday