Brace yourselves for another fuel price increase, effective from this Wednesday, 1 February 2012. The Department of Energy has announced that the petrol price (all grades) will rise by 34c/l. Other price changes are Diesel (0.05% sulphur), which will decrease by 1c/l and Diesel (0.005% sulphur), which will decrease by 2c/l.
The petrol hike will push the cost of fuel to an all-time high. The new pump price for 95 Octane will be R10.95 p/l. Over the past 12 months the price of petrol will have risen by R1.96 per litre or 21.8%y/y.
South Africa is a net importer of oil and adjusts its fuel price each month to account for changes in the dollar/rand exchange rate, the international oil price and government levies. During the period under review, the average international product prices of petrol and diesel increased, while the average Rand/Dollar exchange rate strengthened. On 27 January 2012, the average unit under recovery was 40.7c/l which would indicate that a further petrol price hike is possible in March.
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