The department of energy have announced a shocking petrol price increase of 93c a litre next Wednesday, while diesel will cost 69c/l more.
The steep 8.4% increase kicks in at midnight on September 5, and a part of it will be used to finance wage increases for pump attendants at garages, the Department of Energy said.
The latest hike means that residents along the coast will pay R11.62 a litre for 95 unleaded grade petrol while the inland commercial region of Gauteng will pay R11.97/l.
The wholesale diesel price will also go up by about 6.7% to R10.95/l.
The petrol increase is also the result of rising oil prices and the weakening of the average rand/dollar exchange rateduring the review period. Oil prices have been pushed higher by supply issues and improved consumer confidence in the US.
I-Net Bridge reported that the Minister of Energy on August 24 approved that the retail margin on all grades of petrol be increased by 3.5c/l from 91.8c/l to 95.3c/l with effect from September 5.
This increase‚ the department said‚ was necessary in order for service station operators to finance the wage increases for service station pump attendants and cashiers, as agreed upon at the Motor Industry Bargaining Council in September 2010.
The increase to accommodate wage increases is ring-fenced and should be excluded from determining rental fees between service station operators and service station investors‚ the department said.
The department also announced that the single maximum national retail price for illuminating paraffin will increase by 97c/l to R8.34/l.