No need for panic about steep April petrol price increases: Dept

APRIL 4, 2016

The Department of Energy on Saturday announced a steep fuel price adjustment for April, which takes effect this week.

According to the department, petrol 95 (both ULP & LRP) will increase by 88c a litre while 93 (both ULP & LRP) will increase by 86c a litre. Thus, petrol 95 price in inland areas increases to R12.62 while petrol 93 will increase to R12.32.

At the coast, petrol 95 will cost R12.39 and petrol 93 will be R12.06.
The Department adjusted diesel (0.05% sulphur) price by a 96c/litre increase while diesel (0.005% sulphur) will increase by 98c/litre.

Illuminating paraffin will increase by 76c/litre and Liquefied Petroleum Gas (LPG) will increase by 110c per kilogram.

The department said that the reason for the increase include the increase in fuel levies as determined by the Minister of Finance of 30c/l. The average increase in the prices of petroleum products in the international markets of about 52 c/l for petrol and 61 c/l for diesel respectively also played a part.

According to the department it could have been worse had the Rand not strengthened against the US Dollar during the period under review. Has this not happened the priced could have increased by a further 10 c/l.

Although vehicle owners will have to cope with the enormous increase, the department said that there is no need for panic.

“There is no need to panic at this stage because the crude oil price fluctuations are not expected to be excessive if major geopolitical conflicts are excluded.”