Faizel Patel, Radio Islam News - 01-07-2018
The Energy Department has announced that the price of both grades of petrol, 93 and 95 (ULP & LRP), will increase by 26 cents and 23 c a litre from 4 July.
Diesel goes by a whopping by 26c and 24c a litre while illuminating paraffin will increase by 22 and 30 cents per litre.
The price of LP Gas also goes up and will now cost 37 cents more per kg.
Minister of Energy Jeff Radebe says the main reasons for the fuel price increases are due to the Rand’s depreciation against the US Dollar and an increase in the price of Brent Crude oil.
“The Rand depreciated, on average, against the US Dollar (from 12.51 to 13.29 Rand per USD) during the period under review,, while the average Brent Crude oil price decreased from 77.00USD to 74.00USD per barrel."
Radebe says the main reason for the lower crude oil prices is that the Organisation of Petroleum Exporting Countries (OPEC) and its allies agreed to increase production in order to retake market share from rivals and to calm prices.
The latest hike will force motorists to fork out R15.53 and R16.02 for a litre of 95 octane unleaded petrol on the coast and inland respectively.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that country imports both crude oil and finished products at a price set at the international level, including importation costs.