Fourth straight month of fuel price increases for SA

Consumers and motorists are bracing themselves for another hefty increase in the fuel price, making it the fourth consecutive price hike this year.

Fourth straight month of fuel price increases for SA
- Advertisement -

Consumers and motorists are bracing themselves for another hefty increase in the fuel price, making it the fourth consecutive price hike this year.

The price of both grades of petrol, 93 octane and 95 octane unleaded (ULP), and lead replacement petrol (LRP), will increase 54c/ℓ with effect from midnight tonight.

READ Dramatic savings with low-flow drip irrigation

- Advertisement -

The price of 0,05% sulphur diesel will increase 1c/ℓ, while the price of 0,005% sulphur diesel will remain unchanged, according to a statement by the Department of Energy.

The department cited relatively higher Brent crude oil prices as the main reason for the increase.

“The average Brent crude oil price increased from [about] US$66/barrel [about R948/barrel] to US$70,82/barrel [R1 017/barrel] during the period under review. This [was the] highest level in almost six months as the US government decided to eliminate sanction waivers that allowed buyers to import Iranian crude oil,” explained Energy Minister Jeff Radebe.

READ Diesel tree: fuel for the alternative energy sector

FNB agriculture economist, Paul Makube, said the recent surge in the oil price was “a double whammy” for farmers, due to the direct impact on the fuel price and the indirect effect on oil derivatives such as fertiliser, pesticides and herbicides.

“The summer crop season has ended; however, farmers will start procuring for the next season at higher cost as they are yet to receive the income from the current crop that is still on the land. Furthermore, we are closer to the next planting season for winter crops and the higher costs will definitely erode producer margins.”

Join the Farmer’s Weekly News WhatsApp Group.

Previous articleRecord maize crop expected for Brazil in 2018/2019 season
Next articleGerman farmers fear another drought after dry winter
Jeandré Du Preez is the newest addition to the Farmer’s Weekly team. Originating from a Riversdal farming family, she has farming in her blood. After school she furthered her studies at Stellenbosch and has been working as an agricultural journalist for the past two years. She says she feels privileged to write about an industry paramount to the survival of all South Africans and is inspired by the innovative solutions with which the farming community bridges the many challenges they face. She enjoys being able to combine work with travel and appreciates the modesty and friendliness with which South Africa’s farmers share their accomplishments. She enjoys being able to combine work with travel and appreciates the modesty and friendliness with which South Africa’s farmers share their accomplishments. If she is not writing or visiting farms, you’ll find her relaxing with a good mystery novel or exploring her other passions: travelling and cooking.