Petrol Price Hike in South Africa

PRETORIA – The price of all grades of petrol and diesel increased in South Africa on 5 October 2016.

The Department of Energy said, based on current local and international factors, the price of petrol (93 ULP and LRP) was increasing by 44 cents per litre; petrol (95 ULP and LRP) by 43 cents per litre while diesel (0.05% Sulphur as well as 0.005% Sulphur) increased by 23 cents per litre.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.

The main reason for the fuel price adjustments was due to the contribution of the Rand/US Dollar exchange rate.

“The Rand strengthened against the US Dollar, on average, during the period under review but, was higher than the average of the previous review period. The reason for this is that the Rand/Dollar exchange rate was R14.60 at the beginning of the review period on 1 September 2016 and averaged to R14.01 on 29 September 2016,” said the department.

The fuel price adjustments were also due to the increases in the prices of petrol, diesel and illuminating paraffin, on average, in the international markets during the period under review.

The third factor influencing the fuel price adjustments was the increase in the prices of crude oil, on average, during the period under review.

“A key factor that contributed to the increase in the prices of crude oil was the sharp fall in US crude stocks which pushed the prices up ahead of an oil producers meeting in Algeria, which was planned to take place on 28 September 2016 and speculation of a production freeze,” the department said. – SAnews.gov.za