02 May
2018

South Africans Are Preparing to Tighten Their Belts After Fuel Price Spike


 

The VAT increase has contributed to a rise in the cost of being a motorist in SA

South Africans’ woke up to yet another increase in the fuel prices on Wednesday, 2 May. Motorists are expected to pay record prices for fuel as a result of a soft rand, combined with rising oil prices.

The rand took a knock to reach a three month low against the dollar last week before it recovered reasonably over the long weekend.  However, on Monday, it came under renewed pressure against the major currencies.


This is the second time this year that the price of fuel has increased. (Image Source: Pixabay)

“The rand’s movements were mainly influenced by global factors. The rand went through a period of volatility in April, mainly due to concerns over the China/USA trade tariff dispute that put pressure on the currencies of emerging markets, including South Africa,” said Minister of Energy, Jeff Radebe.

Motorists can now expect to pay R14.72 for a litre of 93 octane unleaded petrol (inland). This is 23 cents more than the previous record high of R14.49 in December last year. Diesel has increased by 58 cents per litre, while the comprehensive price of illuminating paraffin rose by 52 cents per litre. The maximum retail price of LP gas will rise by 70 cents per kilogram.

Radebe added that the adjustment of fuel prices for May 2018 was based on current local and international factors.

 

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