South Africa’s fuel prices to rise

All fuel raises will occur on Wednesday, February 6. While all grades of diesel will cost 17.8 cents per litre more. During the period under review‚ the average international product prices of petrol‚ diesel and illuminating paraffin all increased. 

The weakening rand against the US dollar increased the contribution to the basic fuels price on petrol‚ diesel and illuminating paraffin by 6.4 cents per litre‚ 6.69 cents per litre‚ and 6.74 cents per litre respectively. 

The average rand/dollar exchange rate weakened when compared to the previous period. The average rand/dollar exchange rate for the period December 27 to January 31 was R8.7629 compared to R8.6833 during the previous period.

Decreasing state levy
​The department announced that the cumulative slate balance for petrol and diesel at the end of December amounted to R600-million.

In line with the self-adjusting slate levy mechanism rules‚ the slate levy on petrol and diesel will therefore decrease from 8.78 cents per litre to 6.58 cents per litre with effect from February 6.

When petrol increases occured early in 2012 the department of energy stressed the recent drastic increase in fuel prices was out of the government’s hands and urged South Africans to be more fuel efficient.

At a press briefing in Pretoria on Tuesday, Minister of Energy Dipuo Peters acknowledged that increases impacted negatively on all South Africans.

“While the department is committed to fulfilling its mandate of ensuring that energy is accessible to consumers at the lowest possible costs, it is not within the powers of government to dictate market fuel prices,” Peters said. “Rather, fuel prices are set in line with global market issues such as geopolitics, currency strengths, and speculator activity. South Africa is a price taker.”

Petrol 95 ULP octane in Gauteng will now cost R12.27 a litre‚ while at the coast it will cost R11.92 per litre. The single maximum national retail price for illuminating paraffin will increase by 34 cents per litre. The maximum retail price for liquid petroleum gas will increase by 73 cents per kilogram. – I-net Bridge


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