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Energy Dept: Exchange rate, international fuel price to blame for petrol hike

This is the second consecutive fuel price increase since the start of the year.

Picture: EWN.

JOHANNESBURG - The Energy Department said the exchange rate and international fuel price hikes are partly to blame for Wednesday’s increase at the pumps.

The Automobile Association’s Layton Beard said: “Petrol will increase by R0.74 a litre, diesel by between R0.91 and R0.93, and illuminating petrol by R0.76. The rand to the US dollar exchange rate has worked slightly in South Africa’s favour during the month of February.”

This is the second consecutive fuel price increase since the start of the year.

The Energy Department's Robert Maake said: “Brent crude oil was much more higher during the current review period compared to the previous period.”

South Africans are also being warned to tighten their budgets in the face of this fuel hike.

Economist Azzar Jammine says motorists should be mindful of how they use their cars.

“The best way to tighten their belts is to try travelling less and to prioritise their travels.”

Beard added that: “If you can avoid using your vehicle, especially for those short trips around the corner to the supermarket, then that’s obviously something you need to consider.”

Meanwhile, taxi fares are unlikely to increase immediately once fuel prices rise on Wednesday.

The South African National Taxi Council's Achmat Dyson said: “We serve the poorer community and it is the last resort that taxi associations put up their prices.”

(Edited by Mihlali Ntsabo)