The latest fuel price adjustment, as announced by the Minister of Mineral Resources and Energy, Gwede Mantashe, has farmers breathing a sigh of relief ahead of the start of planting season.
Motorists and agriculturalists transporting goods will, as from 1 September 2020, pay more for petrol and less for diesel and illuminating paraffin. The Minister stated that the petrol prices increased to accommodate the wage increases of pump attendants, cashiers, and administrative staff at service stations. This will see a retail margin increase of 5,3 c/l to be effected in the retail price structures of all octane grades of petrol with effect from Wednesday, 2 September 2020.
According to the Department of Energy, the following adjustments will be made on Wednesday, 2 September:
- Petrol 93: increase of 1 cent per litre
- Petrol 95: increase of 1 cent per litre
- Diesel 0,05%: decrease of 21 cents per litre
- Diesel 0,005%: decrease of 21 cents per litre
- Illuminating paraffin: decrease of 26 cents per litre
A statement released by the Central Energy Fund ascribes the rise in the fuel prices to the Rand depreciating against the US Dollar during the period under review. The average Rand/US Dollar exchange rate for the period 31 July to 27 August was R17,28 compared to R16,82 during the previous period. Subsequently this led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin.