Fuel price set to increase at midnight

Consumers will have to dig deep into their pockets when the petrol price goes up from midnight. Both grades of petrol for both 93 and 95 will increase by R 1.27 cents per litre. Diesel will increase by around 30 cents per litre.

The increase in petrol price will deal a heavy blow to motorists who are already battling with the high costs of living. The price of illuminating paraffin will increase by between 13 and 17 cents per litre.

The rand took a knock and it depreciated against the dollar during the period under review.

Load shedding as well as the fact that South Africa has been grey-listed has had a negative impact on the exchange rate.

Chief Economist at Don Consultancy Group, Chifi Mhango explains.

“Obviously the rand has also taken a knock amid a risk sentiment weighing against the local currency load shedding has also impacted on the currency.”

The oil price on the other hand has fared well in recent months. International Brent crude oil has recently been hovering from 82 and 77 US dollar per barrel.

“There is a number of a factor affecting the oil prices the much talk of Russia cutting exports by 25%,” says Mhango.

A slate levy of 21 rand 92 cents will be implemented into the price structure of petrol and diesel with effect from the 1st of March, and this is expected to further add even more pressure to transport costs.

Video: Fuel price increases on Wednesday

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Source: SABC News (sabcnews.com)