23rd February 2024 6:43 am
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Department of Energy on factors contributing to latest fuel hike

As of 5th June, motorists will have to pay 9 cents more per litre for both unleaded and leaded petrol, 13 cents more for a litre of diesel and 8 cents more for a litre of paraffin.

In a bid to offer more context around the recent fuel hike, Minister of Mineral Resources and Energy, Gwede Mantashe, said in a statement that the recent hikes are due to local and international factors, including the recent Carbon Tax Levy.

According to Engineering News, the Minister cited implementation of the self-adjusting slate levy, which from 5th May would amount to 13.16 cents per litre for petrol and diesel. At the end of April 2019 the combined cumulative slate balance on petrol amounted to minus R1.41 billion.

“A current priority local factor is the newly implemented Carbon Tax Levy which was announced by the Minister of Finance in February 2019, fuel levy applicable to petrol and diesel had increased inline with the announcement,” said a spokesperson from the Department of Energy.

Engineering News added that Brent Crude Oil price had experienced a slight upward increase from $71.00 per barrel to $71.60 per barrel. Adding to that pressure on oil prices is the recently escalating trade tariff tensions between the United States and China.

“On the international front the main reasons for the increase are Rand/Dollar exchange and the Brent Crude Oil price, during the time of review the rand depreciated against the US Dollar from R14.14 to R41.41,” concluded Mantashe.

[Source – Engineering News]
[Image – CC 0 Pixabay]

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