adminRobert Mathe, director at the department, said the price for 93-octane petrol would be increased separately by 73c/l.
“Every quarter we adjust the prices between the two octanes. So this is one such adjustment. For the next few months, the adjustments for the two octanes will be similar,” Mr Mathe said.
The fuel price has risen inexorably over the past two years, from R8,04 a litre of 95-octane in February 2010. Unleaded 95-octane petrol in Gauteng will now cost R11,94 a litre, while at the coast it will cost R11,59 a litre after an increase of 66c/l.
Included in the increase are higher levies announced in Finance Minister Pravin Gordhan’s 2012-13 budget. The fuel levy increased by 20c/l to 197,5c/l, while the Road
Accident Fund levy rose 8c/l to 88c/l.
The price of 0,05 percent sulphur diesel and that of 0,005 percent sulphur diesel will go up by 51,9c/l and 53,9c/l, respectively.
Mike Schussler, economist at Economist.co.za, said the increase was one of the country’s highest yet. Had it not been for global geopolitical tensions affecting the oil price, the increase would have been much lower, he said.
On Thursday, at the end of a monetary policy meeting that kept interest rates unchanged, Reserve Bank governor Gill Marcus said global oil prices were the “main upside risk” to inflation in South Africa. She said the rand’s recent appreciation had helped mute the effects of the rise in oil prices on domestic fuel costs.
From March 2 to 30, the period under review, the average international prices of petrol, diesel and illuminating paraffin increased, and the average rand/dollar exchange rate strengthened to R7,6193 compared with R7,6790 in the previous period.
The strengthening of the rand against the dollar decreased the contribution to the basic price of petrol, diesel and illuminating paraffin by 5,41c/l, 5,53c/l and 5,4c/l respectively.
Marina Willemse, economist at Efficient Group, said that although this was one of the highest monthly fuel-price increases South Africa had seen, “we should not lose sight of the fact that this coincides with tax increases”.
Ms Willemse added there had been no major spikes in international oil prices.
“We are hopeful, though, that fuel prices will later this year stabilise,” she said.
A decrease in international oil prices as a result of the resolution of geopolitical problems would bring about much-needed relief.
Local fuel prices are based on a basket of offshore products and are adjusted each month. — Businessday.
Online Reporter