Another fuel price hike
JOBURG – Motorists will fork out a further 29 cents per litre to fill up their vehicles from 1 February.
It’s another blow for motorists as fuel prices are set to increase on 1 February.
The Department of Energy has confirmed that the retail price of both 93 and 95 octane will increase by 29 cents per litre, while the price of diesel will increase by 21 cents per litre. The wholesale price of illuminating paraffin will also go up by 17 cents per litre and LP gas will increase by 21 cents per kilogram.
The department has stated that the fuel price increases are due to the contribution of the rand/US dollar exchange rate. “The rand strengthened against the US dollar from R13.87 to R13.60, on average, during the period under review when compared to the previous one,” reads a statement by the department, adding that this reduced the price increases by 12 cents per litre.
Read Infographic: The price of petrol from 1986 to 2016
The increased price of crude oil has also been attributed to the fuel price increase. “On average during the period under review, oil prices rose on news that key crude exporters, including Saudi Arabia and Russia, were cutting production to reduce excess supply of crude,” the department said in a statement.
Meanwhile, the Automobile Association (AA) has highlighted that uncertainty still exists about where oil will find its new price equilibrium when the Organisation of the Petroleum Exporting Countries (Opec) production cuts start to filter into the global economy, and pointed out that the rand remains vulnerable to political and economic shocks.
“We advise motorists to create as much space as they can in their household budgets to accommodate possible future fuel price hikes,” the AA said.
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