Ricochet News

Steep fuel price hike expected on 6 June

Jun 2, 2018
Steep fuel price hike expected on 6 June

Another steep increase in the price of fuel was announced on Friday by Energy Minister Jeff Radebe.

He stated that the price of petrol will go up by 82 cents a litre, diesel by 85c and 87c a litre and paraffin by 82c a litre on 6 June.

The Department of Energy said the main reasons for the fuel price adjustments are due to, among others, the contribution of the Rand/US Dollar exchange rate.

“The Rand depreciated, on average, against the US Dollar (from 11.99 to 12.51 Rand per USD) during the period under review. The Rand’s movements were mainly influenced by global factors,” the Department said.

“The Rand traded on the back foot, given recent geopolitical developments which saw the US dollar soaring, and resulted in negative emerging market sentiment.”

“The Rand and other emerging market currencies lost gains due to a rise in US Treasury bond yields to 3.11%. (2) The increase in the prices crude oil,” the Energy Department said.

The Department also said that the average Brent Crude oil price increased from 70.88USD to 77.00USD per barrel during the period under review.

“The international prices of petroleum products increased on average during the period under review. This was in line with the higher crude oil prices,” the Department said.

“The Department of Energy urge motorists to use fuel efficiently by applying fuel saving tips such as using lift clubs and public transport whenever it’s possible to do so; and also by planning all the trips beforehand, amongst others,” it said.