Motorists will have to dig even deeper in their pockets as the price of petrol is expected to increase from midnight on Tuesday by 54 cents, diesel by 1 cent and illuminating paraffin by 3 cents. Petrol will cost an estimated R16.07 per litre in May.
Minister of Energy Jeff Radebe says that there are international factors contributing to the rise in petrol cost, such as the strength of the rand to the US dollar.
“The rand on average has strengthened slightly against the US dollar from 14.3871 to 14.1401 rand per dollar. The settling of contagion risks from emerging markets provided a foundation for the rand’s strengthening trend.”
He adds that although this decreased the contribution of the Basic Fuel Prices of petrol, diesel and illuminating paraffin to about an estimated 13 cents a litre, the increase in crude oil prices contributed significantly.
“The average Brent crude oil price increased from 66.03 US dollars (USD) per barrel to 70.82 USD per barrel during the period under review. The oil prices rose to the highest level in almost six months as the US government decided to eliminate sanction waivers that allowed buyers to import Iranian crude oil.”
This was further compounded by existing geopolitical issues in the Middle East and Venezuela, placing pressure on the oil output by the Organisation of Petroleum Exporting Countries (OPEC).
According to the Automobile Association, the cost of petrol has been increasing steadily – Petrol 93 cost R13.43 a litre at the start of the year.
Prices for May 2019
– Petrol 93 and 95: R16.50 a litre
– Diesel (o.o5%): increase by R14.41 a litre
– Diesel (0.005%): will remain unchanged
– lluminating paraffin: increase by 3 cents