Petrol spikes, again

2018-05-16 06:00

THE Minister of Energy, Jeff Radebe recently announced the adjustment of fuel prices effective from May 2 in a media statement. It is said the fuel prices are based on current local and international factors.

“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 importation costs, example, shipping cost,” said Radebe in his statement.

He named three main reasons for the fuel price adjustment which include the contribution of the Rand and Dollar exchange rate. Which on average ranges from 11.85 to 11.95 Rand per USD.

“The rand went through a period of volatility in April, mainly due to concerns over the China and USA trade tariff dispute that put pressure on the currencies of emerging markets, including South Africa,” said the minister.

Secondly the increase in the prices of crude oil. The minister describes that there was a steady increase in Brent Crude oil price during the period under review.

“The crude oil market also found support in an expectation that the Organisation of the Petroleum Exporting Countries (OPEC) production cuts will be sustained. OPEC and 10 rival producers have curbed output by a joint 1.8 million bpd since January 2017, and pledged to do so until the end of this year,” added Radebe.

And lastly, the import prices of petroleum products increased also on average during the period under review which was influenced by the higher crude oil prices.

The Fever report took to the street to ask Amanzimtoti locals about their thoughts on the recent spike in petrol prices.

Local Uber driver Emmanuel Mthethwa said: “This is obvious what it means for us drivers and our customers, there will be an increase in our prices meaning that we get fewer customers. Amanzimtoti already doesn’t have enough people using this facility and with the constant increase in fuel prices I don’t know what they expect us to do really.”

Resident Ruby Govender said: It is not right because when fuel goes up, everything inflates but when the fuel prices go down the other things don’t go down, they stay at that prices. I may not be a driver but I feel the fuel increase every time it does go up.”

Local pupil Ryan Buys said: “I ride my scooter to school every day, it doesn’t always need a lot of fuel so I guess I won’t feel the increase that much.”

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