The Central Energy Fund (CEF) announced on Monday that the price of 95 unleaded petrol in Gauteng will increase to a record R30.25 a litre from Wednesday, 7 October. This represents a R3.33 increase from the current price of R26.92 a litre. According to the CEF's historical price data, this is the highest price recorded for 95 petrol in Gauteng, surpassing the previous high of R28.06 a litre in June this year.
The price of 93 petrol will also increase by R3.12 a litre to R29.88, while diesel prices will rise by R2.84 a litre for 0.05% sulphur diesel and R3.24 a litre for 0.005% sulphur diesel. Illuminating paraffin will increase by R3.58 a litre at wholesale level, while its Single maximum national retail price will rise by R4.77 a litre to R31.82. These increases take effect on 7 October.
The CEF attributed the price increases to the average international product prices for petrol, diesel, and illuminating paraffin, which increased during the period under review, from 28 August to 1 October. For 95 petrol, the movement in international product prices contributed an additional 329.065 cents a litre to the basic fuel price. However, the movement in the exchange rate reduced the contribution by 0.171 cents a litre.
The average rand/US dollar exchange rate was R16.2123 during the period under review, compared with R16.2139 during the previous period. This slight appreciation of the rand against the US dollar resulted in only a marginal reduction in the contribution to the basic fuel prices. The CEF also reported that the combined cumulative petrol and diesel slate balance at the end of August was a negative R10.456-billion.
A slate levy of 87.66 cents a litre will be incorporated into the petrol and diesel price structures from 7 October, an increase of 4.38 cents from the previous 83.28 cents. The department of mineral and petroleum resources attributed the increase in the average Brent crude oil price from $87.89 to $101 during the period under review to continued US/Iran tensions and uncertainty over the flow of oil through the Strait of Hormuz.
The department also cited higher shipping costs and decreasing inventories as factors contributing to the price increase. International petroleum product prices increased due to supply shortages caused by lower global inventories of products. Despite the rand's slight appreciation against the US dollar, the department said this had a limited impact on the basic fuel prices.
The record petrol price of R30.25 a litre in Gauteng will have significant implications for South African motorists. With the price increase taking effect on 7 October, motorists will need to adjust their budgets accordingly. The CEF's announcement is a reminder of the ongoing volatility in the global oil market and its impact on fuel prices in South Africa.
Key points
- The price of 95 unleaded petrol in Gauteng will increase to a record R30.25 a litre from Wednesday, 7 October.
- The price increase is attributed to the rise in international product prices and the movement in the exchange rate.
- The record petrol price will have significant implications for South African motorists, who will need to adjust their budgets accordingly.
