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Petrol Prices Rise Again in April

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Petrol Prices Rise Again in April

Petrol Prices Rise Again in April. The anticipation of yet another surge in petrol prices has left South African motorists reeling. As April approaches, so does the unwelcome news of escalating fuel costs, making it the third consecutive month of increases. With wallets already feeling the strain, consumers are left wondering how much deeper they’ll need to dig.

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April 2024 Fuel Price Adjustments

Here a breakdown of the impending changes:

  • Petrol (93 ULP & LRP): A hefty increase of 65 cents per litre awaits.
  • Petrol (95 ULP & LRP): Following closely behind, a 67 cents per litre hike.
  • Diesel (0.05% sulphur): A modest increase of 3 cents per litre.
  • Diesel (0.005% sulphur): However, a slight relief with a 1 cent decrease.
  • Illuminating Paraffin (wholesale): An encouraging decrease of 29 cents.
  • Single Maximum National Retail Price for illuminating paraffin: A significant drop of 58 cents.
  • Maximum LP Gas retail price: A welcome reduction of 19 cents.

Factors Driving the Increase

The Department of Mineral Resources and Energy (DMRE) attributes these price surges primarily to the global rise in Brent Crude oil prices. During the review period, the cost per barrel climbed from $82.50 to $84.22. Additionally, production cuts by OPEC+ nations and supply disruptions stemming from attacks on Russian refineries by Ukraine have exacerbated the situation.

Impact on Government Levies

Despite limited adjustments to government levies, there’s a notable uptick in the carbon fuel levy by 1 cent per litre for both petrol and diesel. This pushes the total fuel levy to 396 cents/litre for petrol and 384 cents/litre for diesel. The fuel and Road Accident Fund levies, however, remain unchanged as per Finance Minister Enoch Godongwana’s announcement in February’s budget speech.

Economic Implications

Economists express concerns over these fuel price hikes potentially further fueling inflation, which surged to a four-month high in February. The silver lining amidst these increases lies in the reduction of prices for 0.005% diesel, paraffin, and gas. Analysts attribute this decline to the upcoming warmer weather in the northern hemisphere, leading to decreased demand for heating fuels.

Conclusion

while the burden of rising petrol prices looms large, consumers can find some solace in the relief provided by decreased prices for certain fuels. However, the broader economic impacts remain a cause for vigilance as inflationary pressures continue to mount.

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Electricity Prices Soar In April

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Electricity Prices Soar In April

Electricity Prices Soar In April. The price of electricity in South Africa is set to increase yet again, leaving many consumers concerned about the impact on their budgets. Despite a recent tariff adjustment, experts warn that prices could soar even higher in the near future.

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Recent Tariff Increase

Eskom, the country’s primary power utility, has implemented a new tariff structure approved by the National Energy Regulator of South Africa (NERSA) in December 2023. The latest increases, ranging from 12.72% to 12.74%, depending on the customer category, came into effect on 1 April 2024.

  • Eskom Direct Customers: Customers who purchase electricity directly from Eskom will face a 12.74% increase on most charges.
  • Municipal Customers: Residents receiving electricity bills from municipalities will see an average increase of 12.72%, starting in July 2024.
  • Homelight 20A Tariff: Low-income households under this tariff will also experience a 12.74% increase. To mitigate the impact on these households, the affordability subsidy charge will rise by 25.24%, with the additional cost being spread out among non-municipal large industrial and urban customers.

Criticism and Financial Impact

Despite NERSA approval, critics, such as the Democratic Alliance (DA), argue that the continuous tariff hikes are placing undue strain on South Africans. They point out that the 405% cumulative increase in electricity tariffs over the past 14 years is making it increasingly difficult for households to afford basic necessities.

Energy expert Vally Padayachee echoed these concerns, warning that the current tariff increases might not be sufficient to cover Eskom costs. He highlighted Eskom’s financial challenges, noting that while the 12% increment is substantial, it falls short of the utility’s actual cost bases.

Future Outlook

While no major changes were made to the tariff structure this year, Eskom has hinted at possible revisions for the 2025/26 financial year. This uncertainty has left South Africans anxious about the possibility of further price hikes in the future.

Conclusion

As consumers brace themselves for higher electricity bills, the ongoing financial struggles of Eskom raise questions about the sustainability of current tariff levels. The looming possibility of additional increases underscores the need for long-term solutions to ensure affordable and reliable electricity for all South Africans.

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