Fuel price to increase substantially
Fuel price increases on 4 January
Motorists are reminded to fill up before 4 January as the fuel price is set to increase substantially.
To kick off the new year, the Department of Energy has released the fuel price adjustments, and it does not look too rosy for motorists. It is said that the main factors contributing to the increase include the poor rand/ dollar exchange rate as well as the higher price of crude oil based on an agreement by the Organization of the Petroleum Exporting Countries (Opec) members to slash production. Russia and non-OPEC members have also cut the production of crude oil, and the cumulative result has put prices on an upward trajectory, which impacts fuel-price forecasts.
The Automobile Association (AA) is predicting a tough year for motorists as a number of increases are expected. “It is too early to know at what price level oil supply will match demand in the wake of the Opec decision to cut production,” the AA said.
The price of 93 octane unleaded/ lead-replacement petrol will increase by 50 cents per litre to R13,09, while the price of 95 octane unleaded/ lead-replacement petrol will increase by 48 cents per litre to R13,33.
Diesel (0,5 per cent sulphur) will increase by 39 cents per litre and the 0,05 per cent sulphur will increase by 37 cents per litre. Wholesale diesel prices may vary among retailers.
The single maximum national retail price (SMNRP) of illuminating paraffin will increase by 58 cents per litre and LP gas will cost R1,06 more per kilogram.
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