Fuel prices to rise at midnight on Tuesday
In a delayed announcement, the energy department announced the increases just hours before they come into effect
Petrol is set to go up by 9c/l at midnight on Tuesday while both grades of diesel will increase by 33c/l, the Central Energy Fund said just hours before the increases come into effect.
Wholesale paraffin will rise by 8c/l and illuminating paraffin by 10c/l. Liquid petroleum gas (LPG), however, will fall by 7c/kg.
This means inland motorists will pay R16.57 a litre of 93-octane petrol, R16.76 for 95-octane petrol, R15.21 for diesel with a 0.05% sulphur content and R15.27 for that with 0.005%.
The increases follow the introduction of the carbon tax levy which finance minister Tito Mboweni announced during his budget speech on February 20. This levy adds 9c/l on the price of petrol and 10c on diesel.
The department said the rand depreciated against the dollar during the period April 26 to May 30, leading to a higher contribution to fuel prices.
Worsening the problem was the petrol and diesel slate levy balance, which was R1.409bn in the red at the end of April 2019.
“In line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 13.16 c/l will have to be implemented into the price structures of petrol and diesel with effect from June 5 2019,” the department said.
The Automobile Association of SA said the slate levy is used to claw back losses from fuel price under-recoveries when the cumulative petrol and diesel slate balances exceed R250m.