Home Business Rising Costs Expected as September Fuel Prices Take Effect

Rising Costs Expected as September Fuel Prices Take Effect

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Petrol prices

Fuel Set to Increase

The price of fuel is set to rise in September, impacting both grades of petrol and diesel. The adjustments in prices across various fuel types and gas are as follows:

1. Both 95 and 93 petrol will increase by R1.71.
2. Diesel with 0.05% sulphur content will go up by R2.84.
3. Diesel with 0.005% sulphur content will increase by R2.76.
4. Wholesale illuminating paraffin prices will rise by R2.78.
5. The Single Maximum National Retail Price for illuminating paraffin is expected to increase by R3.70.
6. The Maximum Retail Price of LPGas is set to rise by R2.26.

The Department of Mineral Resources and Energy (DMRE) has attributed these price increases to several factors, including the rise in the price of Brent Crude Oil.

The increased petrol prices stem from low inventories and refinery outages that have impacted the production of blending components for summer grade petrol. This has made production more expensive.

The prices of diesel and paraffin have surged due to lower shipments of Russia’s Urals crude oil, which is known for its middle distillate content. Additionally, rising demand for middle distillates ahead of the winter season in the Northern Hemisphere has further contributed to the price hike. The increase in LPGas prices can be attributed to higher prices of Propane and Butane.

These factors have directly influenced the Basic Fuel Prices, which have risen by 135.41 c/l for petrol, 253.42 c/l for diesel, and 247.13 c/l for illuminating paraffin.

The depreciation of the rand against the dollar has also played a role in the increased fuel prices. Moreover, the DMRE has approved a 5c per litre increase in the price structure to accommodate wage increases for forecourt employees, as per the Motor Industry Bargaining Council (MIBCO) Agreement.

These adjusted fuel prices are expected to come into effect on Wednesday, ensuring consumers are prepared for higher costs at the pump.







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