South African motorists should brace for higher fuel costs following an announcement by the government of increases of up to 10 percent in the prices of petrol and diesel starting on Wednesday.
In a statement on Tuesday, the Ministry of Mineral Resources and Energy announced price increases across the board for all grades of fuel, illuminating paraffin and gas.
From March 1, a litre of unleaded 93 petrol would cost up to R22.65 (about US$1.23) at inland service stations compared to R21.38 in February, while the same litre is expected to rise from R20.73 to R22.00 in coastal areas, the ministry said.
A litre of unleaded 95 petrol would increase to R22.95 a litre from R21.68 last month while filling up inland while those who stay in coastal region would have to fork out R22.30 a litre, up from R21.03 in February.
The wholesale prices of 0.05 percent sulphur and 0.005 percent sulphur diesel are expected to increase by 30 cents and 31 cents per litre, respectively.
The actual change in diesel pricing at the pumps will vary from one station to the next, as they can set their own retail prices.
The wholesale price of illuminating paraffin is set to increase marginally by 13 cents a litre, with the retail price expected to rise by 17 cents, while the maximum retail price for liquefied petroleum gas is set to go up by R5.22 a kilogramme.
The ministry said although the price of Brent crude oil decreased slightly during the period under review, other international and national factors were contributors to the higher prices.
“Petrol prices are increasing at a higher rate than diesel because of lower inventory levels globally and closures of refineries in some countries for seasonal maintenance,” it said.
It attributed the increase in LPG prices to higher freight charges and propane and butane prices during the same period, as well as a weaking local currency against the US dollar.
The Rand depreciated, on average, against the US dollar from R17.05 to R17.74 between the end of the end of January and February 28.
JN/APA