Fuel prices will skyrocket this Wednesday, costing motorist nearly R17.00 a litre, according to a formal announcement made by the Department of Energy (DEP).
The Department of Energy has estimated that both grades of petrol 93 and 95 will increase by 99 cents and 100 cents a litre. The increase will set the price of petrol per litre to R16.49 along the South African coastal areas.
The price of diesel will take the largest knock as it increases by R1.24 and illuminating paraffin users can expect a drastic increase of R1.04 per litre.
Living expenses will increase as the price of food and transportation costs go up accordingly.
Although the government stepped in August to prevent a stark petrol increase in September, it is unlikely that the government will step in again.
The DEP has issued that there are three main factors contributing to the catastrophic increase in petrol owing mainly to the weakness of the rand against the US dollar and international oil prices.
“The rand depreciated, on average, against the US dollar (from R13.90 to R14.90 Rand per USD) during the period under review when compared to the previous one,” said the Department.
International crude oil prices have contributed to the increase as Brent oil crude prices rose in the United States.
Brent crude oil prices have increased due to the lack of production outputs by the Organisation of Petroleum Exporting Countries (OPEC) and the harmful effect that the recent hurricanes in the US have had on their petroleum infrastructure.
As a result, the import prices of petroleum products have increased.
The Automobile Association (AA) has shared that it is the highest increase ever recorded.
“Excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced,” said the AA
Fuel price adjustment for October 2018 pic.twitter.com/EaRDwfj36h
— Department of Energy (@Energy_ZA) October 1, 2018