The department of energy has announced that the petrol price will increase by 44 cents in October.
The retail price of petrol (93 octane) will increase by 44 cents per litre and that of 95 octane by 43c per litre.
The wholesale price of diesel (0.05% sulphur and 0.005% sulphur) will increase by 23c per litre, while the wholesale price of illuminating paraffin will increase by 22c per litre.
The single maximum national retail price of illuminating paraffin (SMNRP) will increase by 30c per litre and the maximum retail price for LPGAS will go up by 58c per kilogramme.
According to the department, the economic factors which impacted fuel prices in September included an increase in the average international product prices of petrol, diesel and illuminating paraffin.
On average the rand appreciated against the dollar during September, but still remained above the average of August.
Taking the increases into consideration, this is what you can expect to pay at the pumps (wholesale for diesel) in October.
|Fuel||September (Inland)||From 5 October|
|0.05% Diesel (wholesale)||R10.49||R10.72|
According to Neil Roets, CEO of Debt Rescue, one of the largest debt management companies in South Africa, further increases in the fuel price are expected towards the end of the year.
“The ongoing political bickering within the ANC and an extremely sluggish economy is likely to impact on the rand and it looks as if the price of crude oil may also be on the rise,” Roets said.
One of the major effects of the fuel price increase on the economy is going to the continued rise in the price of food, he noted.
Roets said the real elephant in the room was the expected downgrade by the ratings agencies later in the year.
“Despite all the efforts by government to persuade the agencies that the South African economy is on the mend they are not buying into that narrative and the reasons are clear: widespread corruption and parastatals like Eskom and South African Airways that are burning through taxpayer money at an alarming rate,” he said.
Roets said his company was growing by double digits largely because of the growing number of deeply indebted consumers who were seeking relief by going under debt review.