THE retail petrol price is expected to rise about 24 cents a litre (c/l) on February 6, provided the daily under-recovery remains near the January 17 level.
The Department of Minerals and Energy is also likely to raise the price of wholesale diesel (0.05% sulphur) by about 26c/l.
The under-recovery in South Africa’s daily unleaded 95-octane petrol price was 30.8c/l on January 17, while the diesel under-recovery was 33.6c/l.
An under-recovery means the basic petrol price — based on the daily product price and exchange rate — is more than the basic fuel price used in the calculation of the monthly retail petrol price.
It implies that the retail petrol price is likely to be increased at the next monthly price adjustment, provided the government does not introduce a new levy or raise either the wholesale or the retail margin.
The retail petrol price is adjusted monthly on the first Wednesday of the month in accordance with the previous averaging period’s over-or under-recovery.
The current averaging period runs from December 27 to January 31 and a price announcement is due on February 1.
The average under-recovery for the period December 27 to January 17 for petrol was 19.1c/l, and the average under-recovery for diesel was 21.7c/l.
More in this section
- Electricity demand comes close to overwhelming Eskom capacity
- Cape wind farm to transmit power to grid before Kusile
- Sasol plans office behemoth in Sandton
- Labat Africa looks to diversify into oil with Namibia deal
- Firestone Energy investors get extra time to consider offer
- Eskom was ‘on the brink of a power shutdown’