IT appears that the storm is far from over, as further increases in fuel prices are anticipated in October. Last month, economists predicted a significant rise in fuel prices for October, and it came as no surprise when the Petroleum Fund announced another price hike.
business
Oct. 5, 2023
RETHABILE MOHONO
2 min read
Fuel prices keep rising
Story highlights
Petroleum Fund says costs are determined by various factors, including transportation and associated duty charges among others
The Petroleum Fund, however, advises retailers to conform to the said gazetted prices
The prices at the petrol pumps for both grades of petrol (Petr0193 and Petr0195) have increased by 10 Lisente per litre.
The price of Diese150 has risen by M1.40 per litre, while the price of Illuminating Paraffin has increased by M1.00 per litre.
The new retail prices for all districts in Lesotho will be as follows: Petr0193 at M22.50 per litre, Petr0195 at M23.00 per litre, Diese150 at M25.40 per litre, and Illuminating Paraffin (Retail) at M19.20 per litre.
South Africans have also encountered another fuel price increase as economists predict a bleak outlook for prices in October.
Last month witnessed a substantial rise in fuel costs, with petrol increasing by approximately R1.71 per litre and diesel surging by R2.80 per litre.
According to the Petroleum Fund, these costs are determined by various factors, including transportation, the costs of petroleum products at distribution centres, and associated duty charges.
The September fuel price increase is attributed to several factors, including a slight rise in crude oil prices during the review period.
The average price for August 2023 was $85.1 per barrel, representing a 6.8% increase from the $79.70 experienced in July 2023. This increase is due to the tightening supply of crude oil resulting from production cuts made by Saudi Arabia.
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Furthermore, the Petroleum Fund states that the current increase in diesel and paraffin prices can be attributed to a decline in the shipment of Russia's crude oil, specifically the Urals blend, known for its high middle distillate content. Additionally, there has been an upsurge in demand for middle distillates in anticipation of the winter season in the Northern Hemisphere.
The Petroleum Fund, however, advises retailers to conform to the said gazetted prices, as it is illegal to charge prices that are different from the gazetted prices.
“This appeal comes from past observations that some retailers have continued to charge prices that are above those published. Any retailer who will be found to be charging prices in contravention of these newly set prices shall be prosecuted accordingly.”
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