First we started buying food on credit and now fuel – a slippery slope indeed!
The petrol price among all grades of petrol is to rise by between 21 and 23 cents in October, the Energy Department said on Friday.
A litre of 93 ULP is set to increase by 21 cents while that of 95 ULP will rise by 23 cents.
A litre of both Diesel 0.05% Sulphur is set to increase by 39 cents while that of Diesel 0.005% Sulphur will go up by 40 cents.
Illuminating paraffin wholesale will increase by 33 cents and Illuminating Paraffin (Single Maximum National Retail price) is to increase by 44 cents. The Maximum Retail Price for LPGAS will decrease by 3 cents per kilogram.
The price increases between 95 and 93 octane petrol differ due to the quarterly application of the octane price differentials noted the department.
The price increases will come into effect next Wednesday.
A litre of 95 ULP will now cost R12.20 in Gauteng and R11.85 in the coast. The increase follows on the heels of September’s hefty 93 cents increase – which pushed the petrol price up to R11.97 in Gauteng and R11.62 in the coast.
“During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased. The average Rand/US Dollar exchange rate weakened when compared to the previous period. The average Rand/US Dollar exchange rate for the period 31 August 2012 to 27 September 2012 was 8.3085 compared to 8.2758 during the previous period.
The weakening of the Rand against the US Dollar increased the contribution to the basic fuels price on petrol, diesel and illuminating paraffin by 2.65c/l; 2.80c/l; and 2.79c/l respectively,” said the department.
At the September Monetary Policy Committee meeting of the Reserve Bank last week, the Committee noted that food and petrol prices were the main upside risks to the inflation outlook.
“The petrol price is expected to rise again in October after rising by 93 cents in September,” it said at the time.
“Since August the petrol price has increased by an accumulative R1.15,” said Governor Gill Marcus. – SAnews.gov.za
