According to an announcement made by the national Energy Department on Friday, global events are responsible for the substantial 71 cents per litre increase in the price of petrol.
According to an announcement made by the national Energy Department on Friday, global events are responsible for the substantial 71 cents per litre increase in the price of petrol.
A litre of 95 ULP will rise by 71 cents in Gauteng and 66 cents at the coast, while that of diesel (0.05% sulphur) will rise by 47.6 cents at the coast and 51.9 cents in Gauteng, the department said. The price of illuminating paraffin (wholesale) is set to increase by 20.6 cents at the coast, while it will rise by 26.6 cents in Gauteng.
“This is a tough period for motorists. We recognise the challenges that motorists are going through,” the department’s deputy director general for hydro-carbons and energy planning, Tseliso Maqubela, told the media. He said global prices had been increasing since December, and noted that the global economy had generally been on the mend, resulting in an increase in demand that impacted on the price.
Geopolitical issues in countries producing oil had also affected pricing. In the US, the closing down of refineries on the East Coast – leading to the US obtaining its supplies from the Mediterranean – had meant there was an increase in demand. Fifty percent of South Africa’s fuel price is based on prices it gets from the Mediterranean, Maqubela said.
The fuel tax levy announced by Finance inister Pravin Gordhan as well as the RAF levy and pipeline tariffs announced by the National Energy Regulator of South Africa (Nersa) also factor into the price of petrol. Maqubela said there was consensus that there was a premium on crude oil prices due to developments in the Middle East.
The prices come into effect at 12am on 4 April tomorrow (Wednesday). – BuaNews
