A new 5.3 c/l retail margin on petrol is effective from September 2 to accommodate wage increases for service station staff. Picture: SUPPLIED
A new 5.3 c/l retail margin on petrol is effective from September 2 to accommodate wage increases for service station staff. Picture: SUPPLIED

Motorists will pay 1c a litre more for all grades of petrol from Wednesday September 2, but owners of diesel vehicles will enjoy a 21c a litre saving, the Central Energy Fund (CEF) announced today.

The wholesale price of illuminating paraffin will decrease by 26c a litre.

The petrol price includes a new 5.3 c/l retail margin effective from September 2 to accommodate wage increases of pump attendants, cashiers and administrative staff at service stations.

The September diesel price reduction and minimal petrol price increase follows hikes to fuel prices in the last three months, after sharp decreases in April and May when the oil price plummeted.

The CEF said the average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review. The rand depreciated against the US dollar, to an average of 17.28 between July 31 and August 27, compared to 16.82 during the previous period.

“On average, exchange rate losses added around 17c/l to next month’s petrol price. The good news is that a steady performance from international oil prices has offset the rand's weakness,” said the AA.

“As the country comes to terms with the economic damage caused by the Covid-19 lockdown, there is also concern about government’s ongoing policy uncertainty and levels of corruption as highlighted by the president,” the Association said.

It noted that these failings affect investor confidence and, by extension, the Rand's strength, meaning the fuel price is higher than it should be, and will take longer than necessary to return to reasonable levels in the short to medium term.

From Wednesday the price of fuel will be as follows:

• 95 unleaded inland: R15.18

• 95 unleaded coast: R14.48

• 93 unleaded and LRP: R14.89

• Diesel 0.05% sulphur inland: R13.27

• Diesel 0.05% sulphur coast: R12.67

droppad@businesslive.co.za

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