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Petrol price to rise sharply

| Economic factors

The petrol price is to increase by 86c/l for 93 octane and 88c/l for 95 octane from Wednesday‚ the Department of Energy says.

It said the strengthening of the rand against the US dollar during the review period had cushioned the price increases by close to 10c/l.

The price of diesel will increase by between 95.7c/l and 97.7c/l‚ while paraffin will cost 76c/l more and liquid petroleum gas 110c per kg more.

The Automobile Association said late last month that “although the rand-dollar exchange rate has firmed in the rand’s favour over the past few weeks‚ the strengthening of international petroleum product rises has outstripped the rand’s gains”.

The association said that the fuel price was subject to considerable risk.

“If oil prices continue to climb‚ South African motorists can expect substantial fuel price increases‚” it said.

“Any associated deterioration in the exchange rate will add more pressure. A combination of sustained oil strength and a ratings downgrade before year end‚ would be very negative for motorists.”

TMG Digital

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