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

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. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


Sassa disses disability grant applicants

Towards the end of level four of the lockdown, Sassa offices reopened for applications for old age pensions and childcare and foster care grants, but not for disability grants

Gauteng health MEC Bandile Masuku’s first rule: Don’t panic

As Gauteng braces for its Covid-19 peak, the province’s MEC for health, Bandile Masuku, is putting his training to the test as he leads efforts to tackle the impending public health crisis

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday