Ricochet News

Expect steep petrol price increase in April: Solidarity

MARCH 18, 2016
Expect steep petrol price increase in April: Solidarity

If a forecast by Senior Researcher at Solidarity Research Institute, Paul Joubert, are anything to go by, then consumers can expect a huge increase in the petrol price in April.

“If the current under-recovery on petrol remains as is until 31 March, the price of a litre of 95 octane petrol will rise by about 83 cents.

“Under the same circumstances, the price of 93 octane petrol will rise by about 79 cents and the wholesale price of diesel will rise by about 93 cents per litre,” Jourbet was quoted on Business Tech.

He said that so far in March, the rand has on average been a bit stronger, at R15.57 against the dollar, unlike in February (R15.79). However, bulk refinery-gate prices of petrol and diesel have increased significantly on the international market over the same period.

According to Jourbet, combined with the annual increase in the tax on fuel (at 30 cents this year), fuel prices will have to be higher in April.

He said that if the price increases by 79 cents, 93 octane petrol will cost R12.25 in Gauteng in April – still 2.9% lower than in April 2015. If diesel increases by 93 cents, the wholesale price for diesel with 0,05% sulphur will be R10.51, which is 6.4% lower than it was in April 2015.

Solidarity still stressed that the forecast prices are subject to much uncertainty, especially with the volatile markets at the moment, and therefore could change significantly before the end of March.