Okay, the headline of this news piece is mischievous, the increase is just 49 cents a litre. You certainly don’t have to abandon your ride because of the not-too-significant amount.
As culled from a media statement issued by the Department of Energy, the adjustment in fuel prices will take effect on 3rd May 2017.
Informing the public of the fuel price adjustments for May 2017, the Department specified that the country’s fuel prices are adjusted on a monthly basis based on international and local factors.
Highlighting that the international factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs, the Department of Energy listed the main reasons for the coming fuel price adjustments. They include:
- The weakening of the Rand against the US Dollar during the period under review which contributed about 25 cents per litre on the fuel price increases, and;
- The average increase in the prices of petroleum products in the international markets in line with the higher crude oil prices.
The Department further buttressed thus:
“The crude oil prices have been slowly rebounding with refinery production starting to increase as the Northern Hemisphere summer driving season approaches.
Oil prices also settled firmer as support from an outage at the largest UK North Sea, Buzzard oilfield which produces 180,000 barrel per day, was offset by a surprise increase in US crude oil inventories.”
Based on the said local and international factors, the fuel prices for May 2017 will be adjusted as follows:
- Petrol (95 Octane, ULP and LRP): 49.00 c/l increase;
- Petrol (93 Octane, ULP and LRP): 49.00 c/l increase
- Diesel (0.05% sulphur): 30.00 c/l increase;
- Diesel (0.005% sulphur): 32.00 c/l increase;
- Illuminating Paraffin (wholesale): 34.00 c/l increase;
- SMNRP for IP: 46.00 c/l increase;
- Maximum LPGas Retail Price: 96.00 c/kg increase.
From our gatherings, the Department will release the fuel pricing schedule for the different zones on Tuesday, 02 May 2017.