Petrol price: good news and bad news

There’s some good news and bad news for South African motorists as the petrol price is set to decrease marginally next week – but there are dark times on the horizon.

The retail price of all grades of petrol will drop by five cents a litre next week, the energy department said on Friday.

The price of diesel with 0.05 percent sulphur content would increase by 13.82 cents per litre wholesale, while diesel with 0.005 percent sulphur would increase by 14.82 cents per litre wholesale.

The wholesale price of illuminating paraffin would increase by 25 cents a litre.

The single maximum national retail price would increase by 33 cents a litre for illuminating paraffin.

The maximum retail price for LP Gas would increase by nine cents per kilogram.

“The average rand-US dollar exchange rate weakened when compared to the previous period,” the department said in a statement.

“The weakening of the rand against the US dollar increased the contribution to the basic fuels price on petrol, diesel and illuminating paraffin.”

The decrease and increas willcome into effect on September 4.

More pain to come

While most South African motorists will experience a reprieve next week, they should prepare themselves for a fuel hike of as much as 70 cents in October, according to economists.

According to Econometrix economist Laura Campbell, speaking to BusinessDay, the country is currently seeing an under-recovery of 70 cents per litre, which “must come through in October”.

Mike Schussler, economist at Economists.co.za, pegged the October increase at 50c/l, the report said.

(With Sapa)

More on the fuel price

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Petrol price: good news and bad news