How much more you will fork out for petrol next week
The Department of Energy has confirmed a fuel price hike for February, citing current oil prices and the rand/dollar exchange rate.
The department noted that 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.
This reduced the price increases by 12 cents per litre, it said.
The department said that the prices of crude oil increased, 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. Furthermore, the US inventory data showed that the global market was tightening due to lower production by OPEC and other exporters,” the DoE said.
The Automobile Association warned this week that international oil prices have been on an upward trend since the start of December 2016.
It said that uncertainty still exists about where oil will find its new price equilibrium when the 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.
Based on current local and international factors, the fuel prices for February 2017 will be adjusted as follows:
- Petrol (both 93 & 95 – ULP and LRP): 29c/l increase
- Diesel (0.05% and 0.005% Sulphur): 21c/l increase
- Wholesale price of Illuminating Paraffin: 17c/l increase
- SMNRP of Illuminating Paraffin: 22c/l increase
- Maximum Retail Price of LPGas: 21c/kg increase
This is how the price will reflect at the pumps (wholesale for Diesel):
| Fuel | January official | February Official |
|---|---|---|
| 95 Petrol | R13.33 | R13.62 |
| 0.05% Diesel (wholesale) | R11.42 | R11.63 |
Read: Petrol price, rate hike double blow coming for SA consumers
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