Ricochet News

Petrol price hike for December 2017 now officially confirmed

Dec 4, 2017
Petrol price hike for December 2017 now officially confirmed

It's probably a good idea to fill up before midnight on Tuesday. The Department of Energy on Monday confirmed fuel price increases for December, which will kick in on Wednesday. 

Based on current local and international factors, the fuel prices for December 2017 will be adjusted as follows:

  • Petrol (93 Octane, ULP and LRP): 71.00 c/l increase;
  • Petrol (95 Octane, ULP and LRP): 71.00 c/l increase;
  • Diesel (0.05% sulphur): 60.30 c/l increase;
  • Diesel (0.005% sulphur): 57.30 c/l increase;
  • Illuminating Paraffin (wholesale): 73.30 c/l increase;
  • SMNRP for IP: 98.00 c/l increase; and
  • Maximum LPGas Retail Price: 204.00 c/kg increase.

"South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs," the Department said.

"The main reasons for the fuel price adjustments are due to: (1) The contribution of the Rand/US Dollar exchange rate. The Rand depreciated against the US Dollar from R13.62 to R14.10, on average, during the period under review when compared to the previous one.

"(2) The increase in the prices crude oil. The average Brent Crude oil price increased from 56.86USD to 62.50USD per barrel during the period under review. The crude oil prices hit two-year highs well above $60/bbl, partly because of the renewed tensions and uncertainties in the Middle East, with and partly due to buoyant global demand expectations and the strong likelihood that OPEC will extend its output cuts programme well into the coming year.

"(3) The annual margins adjustment In line with the application of the Regulatory Accounts System the Minister of Energy has approved a net increase of 3.9 c/l in the annual margin adjustments on petrol and a net increase of 0.7 cents per litre on secondary storage and secondary distribution margins."

The fuel prices schedule for the different zones will be published on Tuesday, 05 December 2017.