Shipping costs around the importation of fuel are one of the key factors pushing up the fuel price – which broke the R16-per-litre barrier on Wednesday, July 4.
Minister of Energy, Jeff Radebe, announced last Sunday that the price of petrol and diesel would rise by 26 cents a litre. He attributed the increase to the rand/US dollar exchange rate, decrease in the prices of crude oil, and the import prices of petroleum products.
“The rand’s movements were mainly influenced by global factors. The market has started to become worried about the effect that the trade war between the USA and China will have on the global economy,” said Radebe.
While transport economist Mike Schussler earlier predicted that the fuel price would escalate in July/ August, he said there might be some fuel price relief towards the end of the year. Fuel costs are about a third of transporters’ costs, according to Schussler.
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Minister of Energy, Jeff Radebe.
