Brace for a whopping fuel price increase

Motorists can brace themselves for a whopping fuel price increase.

Petrol will increase by 71 cents per litre on Wednesday‚ the Department of Energy announced on Monday.

Diesel will increase by between 57.3c/l and 60.3c/l‚ while the wholesale price of illuminating paraffin will rise by 73.3c/l. The retail price of LP gas will increase by 204c/kg.

The department said the main reasons for the petrol price increase were the rand’s depreciation against the dollar during the period under review‚ increases in crude oil prices which hit two-year highs increase in well above $60/bbl‚ and the annual margins adjustment.

The rand depreciated from R13.62 to R14.10 against the US dollar on average during the period under review.

The sharp rise in crude oil prices was attributed in part to the renewed tensions and uncertainties in the Middle East‚ and was also partly due to buoyant global demand expectations and the strong likelihood that OPEC will extend its output cuts programme well into the coming year.