Ricochet News

Petrol price September 2017 - Latest AA prediction points to a stiff increase

Aug 30, 2017
Petrol price September 2017 - Latest AA prediction points to a stiff increase

Motorists should expect the petrol price to increase by 61 cents a litre in September while diesel could see a 46 cents jump and illumination paraffin a 50 cents increase, according to the latest Automobile Association (AA) of South Africa prediction.

A litre of 95 Unleaded petrol currently costs R12.56 at the coast and R13.05 in Gauteng.

The Department of Energy is expected to confirm the fuel prices for Septembter by the end of this week.

"The majority of the increase is attributable to strength in international petroleum prices, with just four cents of the hikes due to Rand weakness.

“If oil continues to climb, South Africans should expect further pain at the pumps in the upcoming months,” the AA said.

In August, 95 and 93 Octane ULP and LRP increased by 19 cents per litre; diesel (0.05% sulphur) by 29 cents, while diesel (0.005% sulphur) increased by 30 cents per litre.

Illuminating Paraffin (wholesale) increased by 26 cents per litre; SMNRP for IP by 35 cents per litre, and maximum retail price for LPGas increased by 40 cents per kg.

The Department of Energy said that main reasons for the August petrol increase was the slight decline in the rand against the US Dollar Exchange rate and increase in prices of petroleum products in the international markets, in line with the higher crude oil prices.

“The rand depreciated slightly on average, against the US Dollar during the period under review. This led to higher contribution to the Basic Fuel Price on petrol, diesel and illuminating paraffin by 11.15c/l, 10.93c/l and 10.88c/l, respectively.

“The Crude oil prices rose, partly on drawdowns of global inventories including in the closely watched US market. The market has been anticipating a return to balance at some point this year and there are signs now that it is happening,” the department said then.