Record price hike expected for diesel in SA
International oil prices biggest contributor
Brent crude oil prices increased by almost 4% over the past month as Russia cut back on its exports.
Record price hike expected for diesel in SA
International oil prices biggest contributor
Brent crude oil prices increased by almost 4% over the past month as Russia cut back on its exports.
What is significant in the report is a call for a review of the viability of the Road Accident Fund (RAF) against alternative approaches, notably compulsory third-party insurance. Automobile Association
The wholesale diesel price in South Africa may be hiked by almost R2.85 a litre on Wednesday, the latest unaudited data from the Central Energy Fund shows. According to the Automobile Association (AA), this will be a record price increase.
The expected hike will increase the suggested wholesale diesel price to R23.06, the highest since December last year.
The latest data suggests unleaded petrol (95) will climb by almost R1.65 a litre, pushing petrol prices to the highest level since August last year, the AA says.
Illuminating paraffin prices may increase by as much as R2.80 a litre.
Local fuel prices are determined by the oil price and the rand-dollar exchange rate, as oil is priced in dollar.
According to the CEF’s data, higher international oil prices are contributing between 80% and 88% to the expected increases, with the weaker rand against the dollar contributing the rest, says the AA.
Brent crude oil prices increased by almost 4% over the past month as Russia cut back on its exports. Saudi Arabia has also lowered its production, while oil prices have also been firming on expectations that the US may avoid a recession and that the Chinese government will stimulate its economy.
The rand has weakened more than 1% against the dollar over the past month.
SARB
Meanwhile, the AA welcomed a recent South African Reserve Bank (SARB) paper about how the petrol price could be moderated. Among other recommendations, two economists at the central bank argued for a review of the methodology for calculating retail margins and a reconsideration of proposals "to move the petrol price to a maximum, rather than regulated price".
"What is significant in the report is a call for a review of the viability of the Road Accident Fund (RAF) against alternative approaches, notably compulsory third-party insurance. While the issue of compulsory third-party insurance needs further, deeper discussion, we concur with the researchers that there is institutional failure at the RAF, and that 'the rising cost of the RAF levy means that the additional cost to petrol prices has rapidly eroded the cost benefit for drivers relative to mandatory private insurance'," the AA noted.-Fin24
International oil prices biggest contributor
Brent crude oil prices increased by almost 4% over the past month as Russia cut back on its exports.
What is significant in the report is a call for a review of the viability of the Road Accident Fund (RAF) against alternative approaches, notably compulsory third-party insurance. Automobile Association
The wholesale diesel price in South Africa may be hiked by almost R2.85 a litre on Wednesday, the latest unaudited data from the Central Energy Fund shows. According to the Automobile Association (AA), this will be a record price increase.
The expected hike will increase the suggested wholesale diesel price to R23.06, the highest since December last year.
The latest data suggests unleaded petrol (95) will climb by almost R1.65 a litre, pushing petrol prices to the highest level since August last year, the AA says.
Illuminating paraffin prices may increase by as much as R2.80 a litre.
Local fuel prices are determined by the oil price and the rand-dollar exchange rate, as oil is priced in dollar.
According to the CEF’s data, higher international oil prices are contributing between 80% and 88% to the expected increases, with the weaker rand against the dollar contributing the rest, says the AA.
Brent crude oil prices increased by almost 4% over the past month as Russia cut back on its exports. Saudi Arabia has also lowered its production, while oil prices have also been firming on expectations that the US may avoid a recession and that the Chinese government will stimulate its economy.
The rand has weakened more than 1% against the dollar over the past month.
SARB
Meanwhile, the AA welcomed a recent South African Reserve Bank (SARB) paper about how the petrol price could be moderated. Among other recommendations, two economists at the central bank argued for a review of the methodology for calculating retail margins and a reconsideration of proposals "to move the petrol price to a maximum, rather than regulated price".
"What is significant in the report is a call for a review of the viability of the Road Accident Fund (RAF) against alternative approaches, notably compulsory third-party insurance. While the issue of compulsory third-party insurance needs further, deeper discussion, we concur with the researchers that there is institutional failure at the RAF, and that 'the rising cost of the RAF levy means that the additional cost to petrol prices has rapidly eroded the cost benefit for drivers relative to mandatory private insurance'," the AA noted.-Fin24
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