Faizel Patel – 30/06/2020
As South Africa enters day 96 of the national COVID-19 lockdown, the Energy Department has announced that the price of 93 grade petrol will increase by R 1.63 cents per litre from Wednesday while 95 octane increases by R 1.72
The prices of different grades of diesel increases by R 1.73 cents (for 0.05% sulphur) and R 1.69 cents (0.005% sulphur) per litre while illuminating paraffin will increase by R 2.14 cents per litre.
The price of LP gas also increases by R 4.48 cents per kg.
The Energy Department says the main reason for the higher oil prices is that major economies around the world began to ease the coronavirus lockdown measures amid the production cut by OPEC and Russia.
“During the current fuel price review, the average Brent Crude oil price increased from 27.63 USD/barrel to 40.01 USD/barrel. On the finished products, the international prices of all refined petroleum products also increased following that of crude oil resulting in average under recoveries of over 206.23 c/I on petrol and 202.85 c/l on diesel and 245.05 c/l on Illuminating Paraffin.”
The department also says that Energy Minister Gwede Mantashe approved the utilisation of the Saudi Contract Price (CP) to calculate the import parity price of LPGas through the publication of the regulations in the government gazette.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.