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Johannesburg - The next fuel increase is expected to be high due to the rand going through a bad patch and the introduction of new levies, the energy department said on Tuesday.
"The department will announce the increase next week, but at
this stage it is speculative," said spokesperson Bheki Khumalo, of
reports of an expected 50c per litre price rise.
However, due to fluctuation in the rand/dollar exchange rate -
under-recovery will be at least 25c a litre for petrol and 23c a litre for diesel.
The petrol price is quoted in US dollars, and is influenced by
international oil prices - which shift daily, the rand/dollar
exchange rate and the supply and demand of the commodity.
According to the energy department's website, the price paid at
the pump includes the cost of transporting petroleum products to
South Africa, insurance, agents' fees, the cost of using harbour
facilities to offload and storage at terminals. Then there are
inland transport costs, customs levies and retail profit margins.
Under-recoveries occur when the exchange rate is worse than
planned, making dollars more expensive, which in turn costs the
government more for fuel.
Other levies, announced by the minister of finance earlier this
year, were due to come into effect on April 7.
They included an increase in fuel taxes of 25.5c a litre,
which consists of 7.5c towards a new fuel pipeline between
Durban and Gauteng, and another eight cents for the Road Accident Fund on top of the 64c it gets from every litre of fuel.
- Sapa