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.
International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.
The main reasons for the fuel price adjustments in August 2017 are:
(a) Rand/US Dollar Exchange rate
The Rand depreciated, on average, against the US Dollar during the period under review.
(b) 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; (a) the increase in the crude oil prices and the weaker Rand, (b) Massive floods caused by the storm which forced several refineries to close along the U.S. Gulf Coast; and (c) 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
(c) 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.
Based on current local and international factors, the fuel prices for September 2017 will be adjusted as follows:
- Petrol (95 Octane, ULP and LRP): 67.00 c/l increase;
- Petrol (93 Octane, ULP and LRP): 67.00 c/l increase
- Diesel (0.05% sulphur): 44.00 c/l increase;
- Diesel (0.005% sulphur): 44.00 c/l increase;
- Illuminating Paraffin (wholesale): 49.00 c/l increase;
- SMNRP for IP: 65.00 c/l increase;
- Maximum LPGas Retail Price: 86.00 c/kg increase