The Petroleum Fund Secretariat has announced a price hike in petroleum products effective from  May 01 2004.According to a Press Release issued by the Chief Executive Officer (CEO), Mr. Thato Mohasoa, the pump prices of both petrol grades, 93 and 95, have increased by fifty cents (M0.55) per litre. However, the pump prices of Diesel 50 and illuminating paraffin will remain unchanged.

Retailers are reminded to strictly adhere to the gazetted prices, as any deviation is deemed illegal. The Petroleum Fund drew attention that retailers found charging prices above the stipulated ones will face charges.The regulation of petrol retail prices by the government occurs on the first Wednesday of each month. The prices of controlled petroleum products are influenced by both external and internal factors.

External factors include the dollar price of the product on world markets multiplied by the US$/R exchange rate, while internal factors encompass brand-based retail and oil company marketing margins, transport costs, and taxes and levies.The current instability in prices could be attributed to a decline in the shipment of Russia’s crude oil, particularly the Urals blend, known for its high middle distillate content. Additionally, high petrol prices can be traced to low inventories and refinery outages, causing production problems with blending components used in the creation of summer-grade petrol.These fuel price fluctuations are expected to impact the cost of daily commodities, posing challenges for ordinary consumers.