Petrol price is set to increase this September

The Department of Energy has announced that the price of all grades of petrol is set to increase by 67c/litre at midnight on 5 September 2017.

According to a statement released, the price of diesel, both 0.05% sulphur and 0.005% sulphur, is set to increase by 44c/l. The wholesale price of illuminating paraffin will increase by 49c/l, while the single maximum national retail price (SMNRP) will be 65c/l. The maximum Liquid Petroleum Gas retail price will increase by 86c/kg.

The main reasons for the price increases are:

  • Rand/US Dollar exchange rate

The Rand depreciated, on average, against the US Dollar during the period under review.

  • The prices of petroleum products in the international markets

The international prices of petroleum products increased on average during the period under review. The main contributing factors were:

  1. The increase in the crude oil prices and the weaker Rand.
  2. Massive floods caused by the storm which forced several refineries to close along the U.S. Gulf Coast.
  3. Harvey, the most powerful hurricane to hit Texas in more than 50 years, caused large-scale flooding and forced closure of Houston port and several refineries. These resulted in the supply shortage in the market which led to higher prices of petroleum products.
  • Annual wages increase for forecourt staff

The Minister of Energy, Ms Mamoloko Kubayi has approved an increase in the retail margin of petrol of 4.6cpl to cater for the salary increase of 8.0% for pump attendants and 7.0% for cashiers and 7.5% for other administration staff in line with the Motor Industry Bargaining Council (MIBCO) agreement of 18 November 2016. This money must be ring-fenced for the wages of the forecourt staff.

Here are the 2017 petrol prices so far:

  AUTHOR
Caxton Central

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