By: Lloyd Phillips
Farmers are likely to be unhappy with the substantial diesel price increase from midnight on 2 August.
Farmers and the rest of South Africa are going to take yet another financial knock from midnight on Tuesday after the Department of Mineral Resources and Energy announced price increases for all fuel types.
A statement by the department confirms that both grades of petrol will increase by 37 cents per litre. Wholesale diesel price increases will be even heftier, with 0.05% sulphur diesel to rise by 72 cents/litre and 0.005% sulphur diesel by 71 cents/litre.
The wholesale price of illuminating paraffin will increase by 71 cents/litre, the single maximum national retail price for illuminating paraffin will increase by 95 cents/litre, and the maximum retail price of liquefied petroleum (LP) gas will increase by 161 cents/kilogram.
The department says the main reasons for the increases are the higher Brent crude price due to increasing demand from China and India, and tightened supply because of continued production cuts by Saudi Arabia.
The rand’s recent slight strengthening against the US dollar prevented even higher increases. Similarly, the R2.69-million positive slate balance on petrol and diesel at the end of June meant no slate levy was applicable.
The Automobile Association of South Africa (AASA) says the increases are “another blow for already cash-strapped South Africans”.
Regarding the substantial diesel increases, it says they will mean price increases for goods and services.
“As always, we encourage motorists to ensure their vehicles are in good condition and running optimally to use the correct amount of fuel,” says the AASA.
“Critically, all consumers should be aware of these increases and they should adjust their budgets accordingly to cover these added expenses.”
