25 February 2011

South Africa: Motorists' Hit By High International Crude Oil Prices

Pretoria — Motorists, who are already facing a number of increases in daily expenses, will have to dig deep as the petrol price is set to increase by 41 cents across all grades.

The Energy Department on Friday said the increases were a result of sharp increases in international crude oil prices.

"This increase in international crude oil prices mainly culminates from the current political turmoil in the Middle East and North Africa which has a severe impact on crude oil supplies," explained the department.

Since the end of January to the end of February, Brent crude oil prices increased by $14 per barrel - from $96 per barrel to $110 per barrel. International refined petroleum product prices followed the crude oil price trend.

Further to this, the Rand's value deteriorated sharply against the dollar which contributed to about 26 cents a litre in the fuel price increases.

The department said the price of petrol across all grades is to rise by 41 cents a litre while the price of Diesel 0.05 percent Sulphur wholesale will increase by 62 cents a litre. The price of Diesel 0.005 will rise by 61 cents a litre.

The wholesale price of illuminating paraffin is to increase by 68 cents and the single maximum national retail price for illuminating paraffin will increase by 90 cents. The maximum retail price for LPGas will increase by 66 cents.

The department said the product prices of diesel and illuminating paraffin increased substantially more than that of petrol due to the high demand for heating fuels in America and Europe.

The prices come into effect next Wednesday.

Delivering the 2011 Budget Speech on Wednesday, Finance Minister Pravin Gordhan announced an increase in the fuel levy by 10c/l on petrol and diesel, effective from 6 April 2011. The Road Accident Fund levy will also be increased by 8c/litre on the same date

In February, the petrol price rose by 26 cents across all grades with a litre costing R8.99 a litre in Gauteng and R8.75 in the coast.

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