SOUTH African motorists, businesses and consumers are going to be hit with petrol price increases as from Wednesday, barely a week after the rising cost of electricity, courtesy of Eskom.
The Department of Mineral Resources and Energy announced on Tuesday that the fuel hike will take effect from 7 April.
Petrol will increase by R1 a litre, which will take the cost of fuel to around R17 a litre inland and at least R16.64 a litre on the coast.
Diesel will increase by between 63 and 65 cents.
The price of 95 (ULP and LRP) will rise by R1 while the price of 93 (ULP and LRP) will rise by 95 cents a litre.
A litre of 95 ULP in Gauteng, which currently costs R16.32, will increase to R17.32 a litre.
Meanwhile, diesel (0.05% sulphur) will increase by 65.20 cents a litre, while the price of diesel (0.005% Sulphur) will increase by 63.20 cents a litre.
The price of illuminating paraffin (wholesale) will increase by 34.80 cents.
The price of illuminating paraffin (SMNRP) will increase by 35 cents, while the Maximum Retail Price for LPGAS will increase by 48 cents per kilogram.
“The average Brent Crude oil price increased from 61.10USD to 64.00USD per barrel during the period under review,” said the department.
“The dramatic price fluctuations are attributable to a variety of events; including low U.S. crude oil inventory figures, the expected increased economic activity in the U.S. due to the approval of their economic stimulus and a vessel stuck in the Suez Canal causing a delay for all cargo containers including oil tankers.”
In addition, the Minister of Finance Tito Mboweni, in his Budget Speech in February 2021, announced that the Fuel and Road Accident Fund (RAF) Levies on both petrol and diesel will increase by 16 cents a litre and 11 cents a litre respectively with effect from Wednesday, 7 April.
“With effect from 07 April 2021, the Fuel Levy in the price structure of petrol and diesel will therefore amount to 393 and 379 cents a litre respectively. The Road Accident Fund Levy in the price structure of both petrol and diesel will amount to 207 cents a litre with effect from 07 April 2021,” said the department.
The Central Energy Fund has blamed the weakened rand for the latest bout of fuel price hikes.
“The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period 26 February 2021 to 30 March 2021 was 14.9829 compared to 14.7631 during the previous period,” the CEF said.
“This led to a higher contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 10.70 c/l, 10.03 c/l and 9.71 c/l respectively.”
- Inside Politics/ Staff Reporter