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Mineral Resources justifies steep fuel price increases

14 April 2021, 2:32 PM  |  SABC  | 

International crude oil prices, refined petroleum products, rand dollar exchange, as well as local factors, are some of the contributing factors in determining fuel prices.

This was revealed by the Department of Mineral Resources and Energy during a virtual appearance before Parliament on Wednesday. This follows the latest fuel increases which saw petrol going up by nearly one rand a litre early this month.

The department says South Africa depends heavily on imported crude oil as it doesn’t have crude oil reserves for about 80% of the fuel demand.

The department’s Robert Maake says, “The price of petrol is regulated at the pump price. So, everywhere you go in the country you fill up your car the price is regulated. The diesel price is not regulated, but a reference price, however, it does go up when the petrol goes up.”

SA fuel price reaches record high

Motorists are now paying R1 more for a litre of 95 Octane fuel and 93 Octane is up by 95 cents per litre. This has pushed the petrol price to a record high of about R17 per litre.

Diesel is up by between 63 and 65 cents per litre, while the price of illuminating paraffin increased by 34 cents, pushing it up to R8.80 cents.

There’s also the 27 cents for the fuel levies, which came into effect this month.

Spokesperson for the Automobile Association, Layton Beard, is concerned the levies are putting more strain on cash-strapped South Africans.

“We’ve always argued there are ways to mitigate the need for those levies and it comes down to the economy and how stable the economy is and that relates to rating agencies and how free of corruption your economy is. So, at some point, you may reach a tipping point where those levies may just be unsustainable to very many people,” he says.

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