Gasoline will cost less tomorrow but it remains an inflation risk



Through Edward West 1h ago

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AUTOMOBILISTS will benefit from a 10 cents per liter (c / l) drop in the price of 95 ULP gasoline, while refined diesel (0.005% sulfur) will increase by 21c / l due to the effects of the price increase global oil prices and a lower rand on local fuel prices set by the government.

Fuel prices in South Africa are adjusted monthly, based on international and local factors.

The average price of Brent crude oil rose to $ 66 (about Rand 906.71) from $ 64.16 per barrel during the period under review, the Ministry of Mineral Resources and Energy said yesterday in a statement. communicated.

“Oil prices remain at high levels as the oil demand season approaches and foreclosure restrictions are lifted in most European countries and the United States,” the department said.

International prices for refined petroleum products, diesel and lighting paraffin had followed the upward trend in crude oil prices.

This led to higher contributions to the base price of gasoline, diesel and lighting paraffin fuel of 6.28 c / l, 35.52 c / l and 36.67 c / l, respectively.

However, the rand appreciated, on average, to R14.11 per dollar over the period, compared to R14.48 per dollar during the previous period.

This resulted in lower price contributions for gasoline, diesel and lighting paraffin base fuels of 17.14 c / l, 16.32 c / l and 15.96 c / l respectively.

The price of illuminating paraffin will increase by 20 cents per liter. The maximum retail price of LPG has fallen by 143 cents per kilogram.

High fuel prices have led to an upward trend in production inflation in South Africa, as petroleum, along with other chemicals such as coke and rubber and plastic products, have been blamed for the 6.7% yoy increase in producer prices in April 2021, up from 5.2% in March 2021.

“It was the highest producer inflation rate since November 2018,” Alexander Forbes Investments said in their latest weekly business magazine. This followed a 4.4% rise in consumer inflation in April, down from 3.2% year-on-year in March, which was driven by transport prices.

The South African Reserve Bank last week raised concerns about the outlook for inflation, with the Monetary Policy Committee’s statement citing rising oil prices and pressure on commodity prices and intermediate food inputs, said Oakland Group CEO Ian van Niekerk.

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