diesel – Agri Limpopo https://limpopoagriculture.co.za/af Agri Limpopo Fri, 24 Aug 2018 07:24:42 +0000 en-ZA hourly 1 https://wordpress.org/?v=5.2.4 https://limpopoagriculture.co.za/wp-content/uploads/2018/08/cropped-Untitled-design-1-32x32.jpg diesel – Agri Limpopo https://limpopoagriculture.co.za/af 32 32 SA fuel prices could reach an all-time high in June 2018 https://limpopoagriculture.co.za/af/sa-fuel-prices-could-reach-an-all-time-high-in-june-2018/?utm_source=rss&utm_medium=rss&utm_campaign=sa-fuel-prices-could-reach-an-all-time-high-in-june-2018 https://limpopoagriculture.co.za/af/sa-fuel-prices-could-reach-an-all-time-high-in-june-2018/#respond Mon, 28 May 2018 08:11:08 +0000 https://limpopoagriculture.co.za/?p=6582 After a notable increase in fuel prices earlier this month, June 2018 could bring further uptick in fuel prices to an all-time high. This is due to higher Brent crude oil price, coupled with the relatively weaker Rand against the US Dollar.

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]]> After a notable increase in fuel prices earlier this month, June 2018 could bring further uptick in fuel prices to an all-time high. This is due to higher Brent crude oil price, coupled with the relatively weaker Rand against the US Dollar. It is still early to be certain about the scale, but the current estimates suggest that prices of petrol and diesel could rise by roughly 5% and 6%, respectively, from May 2018 levels. From an agricultural perspective, this will add pressure on farmers and agribusinesses as it coincides with a high fuel consumption period — harvesting period for summer crops and a planting period for winter crops. It is worth noting that 81% of maize, 76% of wheat and 69% of soybeans in South Africa are transported by road. On average, 75% of national grain and oilseed are transported by road.   

  • Petrol (95 ULP Inland) and Diesel (0.05% Wholesale Inland) prices could increase by 78 cents per litre (c/l) and 84 (c/l) respectively, on 06 June 2018. This means the retail price of petrol could rise to R15.75 per litre from the current level of R14.97 per litre. At the same time, the wholesale diesel price could increase to R14.16 per litre from R13.33 per litre in May 2018.
  • This expected fuel price upsurge is partly driven by the ZAR/USD exchange, after weakening by 4% from April 2018, averaging R12.53 this month at the time of writing.  The higher Brent crude oil price is also a key factor behind the potential fuel price hikes. At the time of writing, the monthly oil price averaged US$76.77 per barrel, up by 7% from April 2018.
  • Above all, the expected fuel price hikes will add pressure on agribusiness and farmers, particularly for summer crop regions which have recently commenced with the harvest activity. Fuel costs make up roughly 11% of grain farmers’ production costs in South Africa. About a third of this is typically utilised during harvesting season.

 

 

Read the full report by Wandile Sihlobo below:

SA fuel prices could reach an all-time high in June 2018

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]]> https://limpopoagriculture.co.za/af/sa-fuel-prices-could-reach-an-all-time-high-in-june-2018/feed/ 0 Another fuel price hike on the cards in September 2018 https://limpopoagriculture.co.za/af/another-fuel-price-hike-on-the-cards-in-september-2018/?utm_source=rss&utm_medium=rss&utm_campaign=another-fuel-price-hike-on-the-cards-in-september-2018 https://limpopoagriculture.co.za/af/another-fuel-price-hike-on-the-cards-in-september-2018/#respond Fri, 24 Aug 2018 07:22:41 +0000 https://limpopoagriculture.co.za/?p=7143 September 2018 could bring a further uptick to an all-time high

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]]> Following a notable increase in fuel prices over the past few months, September 2018 could bring a further uptick to an all-time high. It is still early to be certain about the scale, but the current estimates suggest that prices of petrol and diesel could rise by a percentage point, respectively, from August 2018 levels. While this fuel price increase is set to come during a relatively quiet period in the agricultural sector, farmers in the eastern parts of the country will be at the initial stages of soil preparations for the 2018/19 production season which commences around mid-October 2018. The agribusinesses that operate in the transport industry will also feel a bit of pressure on input costs due to their exposure to road transport. Roughly 81% of maize, 76% of wheat and 69% of soybeans in South Africa are transported by road. On average, 75% of national grain and oilseed are transported by road.

  • Petrol (95 ULP Inland) and Diesel (0.05% Wholesale Inland) prices could increase by 16 cents per litre (c/l) and 15 (c/l) respectively, on 05 September 2018. This means the retail price of petrol could rise to R16.19 per litre from the current level of R16.03 per litre. At the same time, the wholesale diesel price could increase to R14.55 per litre from R14.40 per litre in August 2018.
  • This expected fuel price increase is largely driven by the ZAR/USD exchange, after weakening by 5% from July 2018, averaging R14.00 this month at the time of writing. The Brent crude oil price had minimal impact this time around. At the time of writing, the monthly oil price averaged US$72.74 per barrel, down by 3% from July 2018.

Figure 1: SA retail petrol and wholesale diesel prices

Source: Central Energy Fund, Agbiz Research

Click HERE to read the full report. 

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