South African Motorists will see yet another huge increase in the petrol price in August, as a result of rising oil prices, and a softer local currency against the dollar over the last month.
The Department of Mineral Resources and Energy said in a statement that August also includes a new levy.
“The combined cumulative petrol and diesel slate balances at the end of June 2021 amounted to a negative balance of R535.1 million,” it said.
“In line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 6.58 c/l will have to be implemented into the price structures of petrol and diesel with effect from 4 August 2021.”
The DMRE said that the average Brent Crude oil price increased from $73 to $74 per barrel during the period under review, while the rand depreciated, on average, against the US dollar, from R13.92 to R14.54 over the same period.
The department noted the following price hikes, which will come into effect on Wednesday (4 August):
- Petrol 95: increase of 91 cents per litre;
- Petrol 93: increase of 91 cents per litre;
- Diesel 0.05%: increase of 55.58 cents per litre;
- Diesel 0.005%: increase of 54.58 cents per litre;
- Illuminating Paraffin: increase of 50 cents per litre;
- Single Maximum National Retail Price for LP Gas: increase of 67 cents per litre;
- Maximum LPGas Retail Price: increase of 226 cents per kg.
These increases include the new slate levy.
The Automobile Association said that these new increases will mean the price of petrol will have climbed nearly 23% in just seven months since January, while the price of diesel will have climbed around 20% and the price of illuminating paraffin will have increased by around 30% over the same period.
ULP95 cost R14.86 a litre in January, while a litre of diesel cost R13.00 compared to the expected August price which exceeds R15.50 a litre, the association said. A litre of illuminating paraffin will cost R9.63 when the price is adjusted for August compared to its price of R7.39 in January.
“These increases will add to the heavy financial burden for South Africans already battered by weak economic conditions,” the AA said. @BUSINESSTECH
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