Fuel prices: another big leap

2012-09-01 00:00

Petrol, +93c

Diesel +69c

All octanes +73c

All grades +97c

Paraffin, +129c

MOTORISTS will have to dig deep into their pockets to fill up their tanks this month, following the announcement of a mammoth petrol price increase.

The Department of Energy said yesterday that the price of petrol would rise by 93 cents a litre on Wednesday.

The wholesale price of diesel will go up by 69 cents a litre.

The price of 95 unleaded petrol (coastal) will be about R11,62 a litre.

Gary Ronald, head of public affairs at the Automobile Association, told Weekend Witness that the increase was expected and it would put pressure on all sectors of the economy, including travel and tourism.

The hike would push up public transport fares and particularly the prices of food products.

Economists told Weekend Witness that the latest hikes were mainly the result of geopolitical tensions arising from Iran’s nuclear programme, which had pushed up global crude oil prices in the past month.

Mike Schüssler, chief economist at economists.co.za, said the hike would lift the inflation rate — which was at 4,9% in July — to 5,5% in the next few months. It wouold also put pressure on consumers’ spending power.

The new petrol price will mean that a car with a 60 litre tank will cost about R55 more to fill up.

Merina Willemse, an economist with Efficient Group, said the rise in global crude oil prices related to geopolitical risks rather than a rise in demand.

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