The petrol price is set to increase by 93 cents a litre on Wednesday, September 5, the department of energy said in a statement.
From September 5, the cost of fuel in Gauteng will increase to R11.97 a litre and at the coast the cost of fuel will be R11.62 a litre.
At the same time, the price of diesel (0.05% and 0.005% sulphur) will increase by 69 cents a litre.
The wholesale price of illuminating paraffin will increase by 73 cents a litre and the single maximum national retail price of illuminating paraffin is set to increase by 97 cents a litre.
The maximum retail price of LPgas will increase by 129 cents per kilogram.
The department attributed the increase in the petrol price to increased international prices of petrol, diesel and illuminating paraffin during the period under review.
“The average Rand/US Dollar exchange rate weakened when compared to the previous period. The average Rand/US Dollar
exchange rate for the period 27 July 2012 to 30 August 2012 was 8.2758 compared to 8.2657 during the previous period.”
“The weakening of the Rand against the US Dollar decreased the contribution to the basic fuels price on petrol,
diesel and illuminating paraffin by 0.84 c/l, 0.87 c/l and 0.86 c/l respectively,” the government said.
Another factor that increased the petrol price was the decision by the minister of energy to increase the retail margin on all grades of petrol be increased by 3.5 c/l from 91.8 c/l to 95.3 c/l with effect from 05 September 2012.
“This increase is necessary in order for service station operators to finance the wage increases for service station pump attendants and cashiers agreed upon at the Motor Industry Bargaining Council (MIBCO) in September 2010. This increase in the retail margin to accommodate wage increases is ringfenced and should be excluded from determining rental fees between service station operators and service station investors,” the department said. - Staff reporter