Motorists should preferably fill up their fuel tanks before Wednesday – or dust off the bike – because on 6 September a huge increase in fuel prices comes into effect.
The central energy fund announced in a statement on Monday that diesel of 0.05 sulphate and 0.005 sulphate will increase by an astronomical R2.84 and R2.76 per litre, respectively. This means diesel will now cost you more than R25 per litre. According to the AA, this is the biggest price increase for diesel ever recorded. It is also the most that one liter of diesel has ever cost.
Both grades of petrol (93 and 95) will rise by R1.71 per liter on 6 September. This is even higher than what the Automobile Association (AA) predicted in August and means one liter of petrol will now cost you around R24. This is the most petrol has risen since July last year, when petrol cost just over R26 per litre.
Paraffin increases by R2.78 per liter and gas by R2.26 per liter.
“The expected increases are largely driven by international oil prices which have risen due to low demand and reduced output. Analysts expect Saudi Arabia, the world’s largest oil exporter, to extend its voluntary production cuts until October, keeping oil supplies tight and prices high,” says the AA.
According to the data, higher international oil prices contribute between 80% and 88% to the expected fuel increases, with the weaker exchange rate against the US dollar also having an effect.