Faizel Patel – 03/08/2020
The Energy Department announced the price of all grades petrol will increase by 5 cents per litre from Wednesday.
The prices of different both grades of diesel (0.05% sulphur) and (0.005% sulphur) increases by 45 cents per litre while illuminating paraffin will increase by 39 cents per litre.
The price of LP gas decreases by 4 cents per kg.
The Energy Department says the main reason for the higher oil prices is the Rand strengthened, on average, against the US Dollar (from 17.43 to 16.82 Rand per USD) during the period under review when compared to the previous one.
It says this led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin of about 10.00 c/l.
“During the current fuel price review, the average Brent Crude oil price increased from 40.01 USD/barrel to 43.49 USD/barrel. The Crude prices hit their lowest point in late April but rebounded back above the 40.00 USD/barrel mark since June as economic activities resumed globally following the easing of the respective lockdown measures.”
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.