Energy Minister David Mahlobo says the department is conducting an audit that will inform interventions in the petroleum sector, which he says remained untransformed.
Fuel prices are expected to rise further in November due to the continued rise in the crude oil price and the weakening of the exchange rate, says independent economist Fanie Brink.
The volatile, but weaker exchange rate, coupled with a higher crude oil price, could mean a steep rise in fuel prices this October; this is on the back of the recent September increase. A fair estimate gauges an average increase of approximately 40 cents/litre for petrol and diesel. This unwelcome set of news will impact grain producers as they are on the eve of a new planting season.
According to the mind-month figures from the Central Energy Fund, the actual increase on the product price component of crude oil was between 35-42 cents / liter. The better than expected performance of the exchange rate for the first two weeks of September meant that an over recovery of 8 cents / litre was achieved – offsetting the actual price, thereby reducing how much the price could have gone up by.
The change of season in the Northern hemisphere, normally resulting in higher demand, the volatility of the Rand against major currencies, and the general investor confidence may see another increase before the year is out. Since fuel is a non-discretionary expense for the consumer, these types of movements is not good news for the man on the street. A secondary and longer term effect will be on inflation and which also impact the consumer in terms of food prices however, the recent record harvest and decline in food inflation should serve as a buffer for possible interest rate increases.
The Department of Energy informs the public of the fuel price adjustments for October 2017. South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
Fuel prices are expected to rise further in October due to the sharp rise in crude oil price, says independent economist Fanie Brink.
Despite an extremely challenging economic climate, many South African companies are taking a longer-term outlook to business by only partnering reputable providers of specialist supply chain and transport logistics services.
The Department of Energy informs the public of the fuel price adjustments for September 2017. South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
South African consumers will face yet another blow with the expected increase in fuel price of around 60 cents a litre in September.
Uzuko Carriers hauls fuel for Caltex branded dealerships across the Eastern Cape. Supply chain experts Cargo Carriers just enhanced this joint venture with Caltex Eastern Cape Marketers via the acquisition of seven new Mercedes-Benz trucks.