SA fuel prices set to increase substantially

The Department of Energy has announced that the price of petrol will increase by 88c/l for 95 octane and 86c/l for 93 octane, and diesel (0.05 percent sulphur) by 95.7c/l from midnight on Tuesday.

The Department of Energy has announced that the price of petrol will increase by 88c/l for 95 octane and 86c/l for 93 octane, and diesel (0.05 percent sulphur) by 95.7c/l from midnight on Tuesday.

"lluminating paraffin would increase by 76c/l and liquefied petroleum gas (LPG) by 110c/kg", the department said in a statement on Saturday.

In other fuel pricing zones, the prices will be different due to the adjustment to the transportation costs. The pricing schedule for the different zones will be published on Tuesday, 5 April 2016.

The reasons for the fuel price increases in April included the increase in fuel levies as determined annually by the finance minister of 30c/l.

Transportation costs increased by 5.2c/l in Gauteng resulting from the National Energy Regulator of SA’s (Nersa) approved pipeline tariff increase, as well the road transportation tariff increase obtained from the Road Freight Association (RFA). This would result in different prices for different pricing zones (adjusted annually).

Thirdly, the average increase in the prices of petroleum products in the international markets of about 52c/l for petrol and 61c/l for diesel, the department said.

The strengthening of the rand against the US dollar during the period under review cushioned the price increases by close to 10c/l.

"There is no need to panic at this stage because the crude oil price fluctuations are not expected to be excessive if major geopolitical conflicts are excluded," the department said.

- African News Agency (ANA)