SA fuel prices set to burn pockets

IT is anticipated that fuel prices in South Africa will increase on September 1 due to higher international oil prices and a weaker rand, the Department of Minerals and Energy said in a statement yesterday.

Retail petrol prices will increase by 22 cents per litre, wholesale diesel prices (0,3 per cent) are expected to increase by 32 cents per litre and wholesale diesel prices (0,05 per cent) are expected to increase by 37 cents per litre. Wholesale prices for illuminating paraffin are expected to increase by 34 cents per litre, while the single maximum national retail price for illuminating paraffin is set to increase by 45 cents per litre.The sharp increase in the international prices of crude oil has been attributed to the political tension in the Middle East, concerns about the sustainability of international crude oil production and high demand for crude oil by China.In addition, the increase in oil prices has also been attributed to uncertainty about the future of the Russian oil producer Yukos, efforts by crude oil producing countries to increase earnings from crude oil sales and international market speculation, the Department of Minerals and Energy said.Wholesale prices for illuminating paraffin are expected to increase by 34 cents per litre, while the single maximum national retail price for illuminating paraffin is set to increase by 45 cents per litre.The sharp increase in the international prices of crude oil has been attributed to the political tension in the Middle East, concerns about the sustainability of international crude oil production and high demand for crude oil by China.In addition, the increase in oil prices has also been attributed to uncertainty about the future of the Russian oil producer Yukos, efforts by crude oil producing countries to increase earnings from crude oil sales and international market speculation, the Department of Minerals and Energy said.