Knockout blow for motorists as petrol price scales all-time high | Fin24
 
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Knockout blow for motorists as petrol price scales all-time high

Oct 01 2018 09:37
Fin24 team

Fuel prices will sky-rocket to its most expensive yet come Wednesday, according to the latest increase announced by the Department of Energy (DoE).

Both grades of petrol, 93 and 95 (ULP & LRP), will increase by 99 cents and 100 cents a litre (c/l) respectively from midnight on Tuesday. This brings the overall retail price of 95 ULP for motorists in Gauteng to R17.08 c/l and R16.49 c/l at the Coast.

Diesel 0.05% sulphur and diesel 0.005% sulphur will both increase by 124c a litre.

Illuminating paraffin (wholesale) will go up by 104c, while illuminating paraffin (SMNRP) will cost 139c more per litre.

The maximum retail price for LPGAS will spike by 179c per kilogram.

The department has attributed the rising fuel price to the weakening rand exchange rate. "The average rand/US dollar exchange rate for the period 31 August 2018 to 27 September 2018 was 14.7899 compared to 13.9430 during the previous period.

"This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 48.72c/l, 51.03c/l and 50.62 c/l respectively," the DoE said.

The Automobile Association (AA) on Friday warned that fuel users are facing unprecedented price increases in October that it described as "catastrophic" for road users.

It warned that South Africa could experience its biggest fuel price hike in the country's history in October.

The Association noted that the major culprit is the country's economic policy which has left South Africans defenceless against upticks in international oil prices.

In September the DoE decided to intervene temporarily to provide some relief against fuel price hikes.

Fuel prices increased by just 4.9c per litre, below the 23c to 25c expected by the AA.

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petrol  |  sa economy
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