The price of petrol is expected to go up by a whopping 28 cents a litre next Wednesday.
The announcement was made by the energy department earlier today.
Read the full Department statement below.
The Minister of Energy, Ms Dipuo Peters, has approved the implementation of the revised operating cost recoveries and investor margin into the price structures of petrol, diesel and illuminating paraffin with effect from 07 March 2012.
During the current fuel price review period (27 January 2012 to 01 March 2012), the price of Brent crude oil increased by USD15 per barrel from USD110.0 per barrel (27 January 2012) to peak at USD126.0 per barrel on 23 February 2012. Thereafter Brent crude oil prices started to decrease and reached USD122.73 per barrel on 29 February 2012.
The sharp increase in international crude oil prices mainly resulted from (a) crude oil supply disruptions from Yemen, Syria and Sudan; and (b) news that Iran has been intensifying its nuclear enrichment programme which escalated tensions between Iran and the West.
The subsequent decrease in international crude oil prices from the peak of USD126.0 per barrel on 23 February 2012 was a result of Saudi Arabia increasing its crude oil exports of crude oil by about 9.0 million barrels per day to replace the aforementioned lost crude oil supplies.
International product prices followed a similar trend to that of Brent crude oil although the price movements on middle distillates (diesel and IP) were lower than those of petrol. On average, the international product prices of petrol, diesel and IP increased by 47.0 c/l, 32.0 c/l and 28.0 c/l respectively during the current fuel price review period. These increases were, however, off-set by some 32.0 c/l due to the strengthening of the average Rand-value against the US Dollar during the current fuel price review period.
The strengthening of the Rand-value against the US Dollar may be attributed to (a) Greece's second bail-out deal as the European Union and the International Monetary Fund offered, a €130bn package to avert financial collapse; and (b) the decision by China to loosen its monetary policy to boost economic growth, thereby improving prospects for SA exports.
Based on the fuel price information at the DoE's disposal on 29 February 2012, it is anticipated that the following fuel price increases will be implemented with effect from 07 March 2012, namely:
Petrol (all grades) 28 cents per litre increase in retail price.
Diesel 0.05% sulphur - 10.380 cents per litre increase in wholesale price
Diesel 0.005% Sulphur - 9.380 cents per litre increase in wholesale price
IlluminatingParaffin(Wholesale) 4.000 cents per litre increase in wholesale price
IlluminatingParaffin - 5.000 cents a litre increase in the Single Maximum National Retail price (SMNRP)
MaximumRetailPricefor LPGAS - 36.000 cents per kilogram increase in the maximum retail price.
