Tag: fuel

Source: News24

According to the latest data from the Central Energy Fund, petrol and diesel prices currently look set for large increases in the first week of June.

Adding to the blow is the return of the full general fuel levy (GFL), which government cut by R1.50 per litre for two months. The levy is supposed to be restored at the end of May.

This will increase the levy for petrol from R2.35 to R3.85 per litre. The levy on diesel will be hiked from R2.20 to R3.70 per litre.

In addition, based on current data from the CEF, petrol is expected to increase by between R1.93 and R1.97 a litre, diesel is expected to increase by between R1.60 and R1.62 a litre, and illuminating paraffin is expected to climb by a R2.14 a litre.

The Automobile Association (AA) says together with the return of the general fuel levy this will “result in price shocks never seen before”.

In combination, the petrol price could be around R3.47 a litre more expensive than current levels.

“In late March government reduced the GFL by R1.50 for April and May which brought temporary relief to consumers. The big question now is how government plans to deal with rising fuel costs from June onwards, especially given that baseline prices are forecast to move significantly upwards in June,” notes the AA.

The association says it must be noted that these price increases reflect data from the middle of the month, and that the final data may vary between now and when the adjustment is finally made.

Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars.

The rand is currently trading around its worst levels since November last year, while Brent crude remains close to $110 per barrel.

The AA says while government’s relief on the GFL was welcome, a longer-term solution is needed. It says when government announced the relief in March, it also noted other measures proposed by the Minister of Mineral Resources and Energy to be introduced after the expiry of the temporary measures.

“We are rapidly nearing the end of May and the fuel outlook is looking bleak. Government needs to address this issue sooner rather than later; consumers are anxious about what lies ahead, and government should allay these concerns by indicating as early as possible what steps it will be taking to mitigate against rising fuel costs,” says the AA.

Petrol and diesel prices have surged by more than a third over the past year.

 

OR Tambo in fuel crisis

By Carin Smith for News24

Following flood damage to railways in KwaZulu-Natal, transporting jet fuel from Durban to the OR Tambo International Airport by rail will likely only be 100% restored by the end of October this year, Airports Company SA (ACSA) said on Monday.

The airport is currently suffering a shortage of fuel supplies as a result.

Currently there are about 3.5 days’ supply at OR Tambo. A supply of five or more days is usually regarded as “more comfortable”, ACSA CEO Mpumi Mpofu said during a briefing on Monday afternoon.

Due to a shortage of jet fuel supplies, two airlines have temporarily cancelled flights. One international airline cancelled operations from 24 April to 1 May – a total 14 flights and about 3 150 passengers impacted. Another airline cancelled its flights on 24 April only, impacting about 100 passengers.

“While overall stock levels are stable [at OR Tambo], certain suppliers impacted by a declared force majeure [due to flood impacts] are still unable to acquire the quantities of jet fuel they require. Airlines do not use the same fuel supplier, and as a result not all are equally impacted,” explained Mpofu.

Some airlines have resorted to refueling in Durban and even Windhoek. Mpofu emphasised that there isn’t a fuel crisis at any of ACSA’s other airports in the country.

On Monday, the Department of Minerals and Energy and the Central Energy Fund (CEF) said they were working at providing about 1.5 million litres of jet fuel to OR Tambo in case of a “mismatch” between supply and demand at the OR Tambo airport.

“Our plan B is to ensure that, if an airline cannot get fuel from its normal supplier, the CEF stock kicks in,” said Mpofu.

A consignment of jet fuel by ship has arrived at the Durban port and is being pumped into the National Petroleum Refiners South Africa (NATREF) refinery. It is currently the only refinery in the country that produces jet fuel. About 70% of jet fuel used in SA is imported.

Meanwhile, ACSA was informed by Transnet Freight Rail that it expects its full rail capacity between Durban and the airport to be fully restored by 30 October this year. Transnet expects at least 50% of its normal rail capacity from the coast will be restored by about 9 June. Jet fuel is also transported from Durban to OR Tambo via a pipeline.

Source: News24

Petrol prices will be lowered on Wednesday, while diesel will get pricier, the Department of Mineral Resources and Energy announced on Tuesday.

The petrol price (both 93 and 95) will be cut by 12c a litre, while diesel will be hiked by 98c (0.05% sulphur) and 92c (0.005% sulphur).

Paraffin prices will increase by 79.60c/l.

Local fuel prices are determined by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars. Petrol and diesel prices have surged by more than a third over the past year.

The average Brent crude oil price fell from an average of $109.37 a barrel in March to $104.78 in April, thanks in part to new Covid-19 lockdowns in China, which reduced demand for crude oil. Also, the US released some of its oil strategic stocks to curb price increase.

“The impact of these two factors was not that significant as the average price of crude oil only decreased slightly during the period under review and is still high,” said the department.

The invasion of Ukraine has triggered an oil price shock. Russia is the world’s third-largest producer of crude oil, and it has been locked out of Western markets, pushing oil prices higher.

Local fuel prices continue to benefit from a temporary cut of R1.50 in the general fuel levy for April and May.

The total fuel levy will remain R2.44 a litre for petrol and R2.30 for diesel in May.

 

By Jason Woosey for IOL

After a brief reprieve in January, South Africa’s fuel prices will once again move close to record levels in February, with 95 Unleaded petrol once again surpassing the R20 a litre mark in Gauteng.

On Monday, the Department of Mineral Resources and Energy said both grades of petrol would increase by 53 cents per litre, while low sulphur 50ppm diesel would rise by 79 c/l and 500ppm by 80 c/l.

This means that a litre of 95 Unleaded will cost R19.42 at the coast and R20.14 in the inland regions, where 93 Unleaded will rise to R19.89.

But how much more will a tank cost you from Wednesday, 2 February?

If you own a small hatchback like a Kia Picanto or Hyundai Atos, and assuming that you’ll be putting 30 litres of petrol into its 35 litre tank, then you’re looking at a cost of R582.60 at the coast and R596.70 inland, which is an increase of R15.90 over January. 35 litres in a Volkswagen Polo will set you back R679.70 (coast) and R696.15 (inland), which is R18.55 more than before.

The latest fuel price increases, while caused by surging international oil prices, come amid controversy surrounding the fuel taxes imposed on South African motorists. Taxes and levies add R6.11 to the cost of every litre of fuel sold in South Africa. According to The Organisation Undoing Tax Abuse (OUTA), the fuel levy increased by 116% between 2011 and 2021, while the Road Accident Fund contribution increased by 173%.

The Automobile Association has called for a review of the fuel pricing structure in South Africa, and its online #ReviewTheFuel petition has gained around 25 000 signatures so far.

“Our call is for the Minister of Finance to announce such a review in his Budget Speech in Parliament on 23 February as a first step towards mitigating against rising fuel costs effectively for the benefit of all South Africans,” the AA said.

 

Petrol breaks R20/litre mark

By Jason Woosey for IOL

South African motorists and commuters are facing a full blown crisis with both petrol and diesel set to go up by a massive margin from 1 December, pushing the petrol price past R20 per litre for the first time ever.

According to the Department of Mineral Resources and Energy, both grades of petrol will go up by 81 cents per litre from Wednesday, December 01, while 50ppm diesel will increase by 74 cents and 500ppm by 72 cents. Illuminating paraffin will rise by 42 c/l.

The December fuel price adjustment will see the cost of 95 Unleaded Petrol rising to R19.63 per litre at the coast and R20.35 in the inland regions, where 93 Unleaded will rise to R20.13.

The wholesale price of diesel will increase to R17.30 at the coast and R17.92 in Gauteng, keeping in mind that the unregulated retail prices (which vary between outlets) will be somewhat higher than that.

What is driving the price higher?

The price of Brent Crude oil increased marginally during the month of October, from an average of $82.50 per barrel to $83.00. This alone would not have made a big difference to the December fuel price, however, the rand depreciated from an average of R14.72 in the previous month to R15.85 this month, the energy department said. The Slate Levy, which is used to compensate the industry for cumulative under recovery, also saw an increase of 26.30 c/l.

Fuel taxes and levies currently account for R6.11 per litre of fuel, a fact which is proving increasingly controversial as higher oil prices and a weak rand drive prices up on a monthly basis.

Earlier this year, Outa released a graphic showing that more than 50% of the cost per litre of petrol is made up of levies:

Record fuel hike hits SA

By Jason Woosey for IOL

South African motorists and commuters are facing tough times ahead with record increases for both petrol and diesel set to kick in from Wednesday, 03 November.

According to the Automobile Association, petrol is set to rise by R1.21 per litre, while diesel will go up by a staggering R1.48 a litre and illuminating paraffin by R1.45.

This will inflate the price of a litre of 95 Unleaded petrol to R18.82 at the coast and R19.54 in the inland regions, where the slightly cheaper 93 Unleaded grade will now retail for R19.32. The wholesale price of 50ppm diesel will now amount to R16.63 at the coast and R17.23 inland, but keep in mind that the retail prices, which are unregulated and therefore vary from station to station, will be somewhat higher than that.

But how much more will South Africans pay per tank?

Putting 35 litres of 95 Unleaded into a compact hatchback with a 40 litre tank, such as a Volkswagen Polo or Hyundai i20, will cost an additional R42.35 at the coast (or R658.70 in total), while filling up with 93 Unleaded in Gauteng will now cost R676.20.

Putting 50 litres into a medium-sized car with a 55 litre tank, such as a Toyota Rav4 or Corolla Quest, will cost an additional R60.50, bringing the price of a tank to R941 for 95 ULP at the coast and R966 for 93 ULP inland.

A 75 litre diesel refuel in a bakkie such as a Toyota Hilux or Ford Ranger, or a large SUV like the Fortuner, will cost an additional R111, with the retail tank price differing, depending on where you fill up. Do shop around!

Why is fuel going up?

According to the AA, a “perfect storm” of demand imbalances is behind the record increases, including rand weakness, international oil prices and refinery costs. It also doesn’t help that fuel taxes currently account for at least R6.11 for every litre of fuel.

The cumulative effect of these increases is even more disastrous than the latest increases suggest. Consider that petrol is now around 40% more expensive than it was at the beginning of this year. With Brent Crude oil prices currently sitting at $84.71 per barrel and the rand trading at R15.37, there is little chance of any fuel price relief in the near future.

“The fuel price has a direct bearing on an already weak economy as it continues to drive up inflation on

essential consumer goods and affects every South African,” the AA said. “As we have said many times in the past, all the elements that comprise the fuel must be fully interrogated to determine if they are necessary. Given that the fuel prices are now at record highs, such a review is overdue”.

By Tom Head for The South African

For the third month in a row, the petrol price has decreased in South Africa. March will see the following substantial changes to fuel costs.

A substantial drop for both the diesel and petrol price in South Africa has put our motorists in a good mood at the start of March.

Confirmed petrol price for March 2020
Petrol getting cheaper, but so is diesel and illuminating paraffin:

  • Petrol: Decrease of 19 cents per litre
  • Diesel: Decrease of 54 cents per litre
  • Paraffin:Decrease of 68 cents per litre

Subtracting these totals from February’s fuel price gives us the following average cost-per-litre for petrol and diesel. These prices will take effect from Wednesday 4 March:

  • Inland petrol price – R15.84
  • Coastal petrol price – R15.07
  • Inland diesel price – R13.49
  • Coastal diesel price – R14.03

Why is the petrol price dropping in March?
There are, as ever, two major factors at play. However, it’s the global oil price trends that have accounted for this slashing of fuel costs. The outbreak of the coronavirus has left international markets spooked, and the demand for oil has subsided. The decrease would have been more, if not for the Rand’s weak monthly performance against the US dollar. Despite a brief rally this week, ZAR is still floundering.
The honeymoon period is unlikely to last through to April, however. It was announced during February’s budget speech that taxes on fuel would be rising, making petrol prices more expensive.

South African consumers will experience their first price drop at the pumps in six months as the price of fuel decreases by nearly a rand today.

Petrol 95 will fall by 95 cents a litre and 93 octane by 96 cents, while diesel (0.05% sulphur) will decrease by 74 cents and diesel (0.005% sulphur) by 75 c/l.

However, analysts are pointing out that consumers will have little to celebrate as electricity tariffs hikes kicked in on 1 July.

Despite the fact that the average car will cos R30 to R40 less to fill, consumers are unlikely to achieve much relief.

  • Bus and taxi fares are unlikely to go down
  • Electricity tariffs are increasing
  • The petrol price decrease only accounts for about R2.50 for every R1 000 people have

Petrol up 74c a litre

Source: EWN

The price of petrol at the pump is set to rise by 74 cents a litre from 6 March.

The wholesale diesel price to rise by 91 cents a litre.

The Energy Department’s Robert Maake explains why prices are being increased.

“The main reason for this big increase is mainly the crude oil price. It was much higher during the current review period compared to the previous period. The Brent crude oil was around $34 per barrel while in the previous period it was around $16 per barrel.”

The Automobile Association’s Layton Beard says consumers will be hit hard in the coming months.

“The general fuel levy and the Road Accident Fund levy will be added to the fuel price in April. That is apart from what adjustment is made to the basic fuel price. And obviously, in June, there’s the addition of the carbon tax we have to wait and see on a day-to-day basis how those numbers pan out.”

This is the second consecutive increase in fuel price this year.

Source: IOL

Following a fuel price roller coaster in 2018, in which prices finally subsided meaningfully towards the end of the year, South African motorists can look forward to some price stability, at least for the next month.

According to the Automobile Association, the price of petrol is likely to increase by around eight cents a litre, while diesel is set to go down by three cents and illuminating petrol by nine cents. This prediction is based on late-month, unaudited data released by the Central Energy Fund.

This would push the price of a litre of 95 Unleaded petrol to R13.50 at the coast and R14.09 in Gauteng, with 93 Unleaded rising to R13.87 in the latter region.

While the rand has gradually appreciated against the US dollar in the past month, firming from around R14.50 to the dollar to current levels in the region of around R13.70, international crude oil prices edged higher, to hover around the $60 mark, although this is still well below the highs of around $84 recorded in October.

“What is worth noting is that the average rand strength against the US dollar has been increasing for nearly a month, and we are hopeful this may point to a period of greater stability for the currency,” the AA added.

“If international oil prices continue their current stable trend, South African fuel users may see fewer of the wild swings in fuel prices which characterised 2018.”

But don’t spend all those savings just yet. Last year showed us how volatile the fuel market can get.

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