Posted by News Express | 2 October 2016 | 1,823 times
The petrol price will increase by 43c-44c a litre from next Wednesday, the Department of Energy announced on Friday.
Diesel will go up 23c a litre and illuminating paraffin 22c a litre.
The department said that average international product prices of petrol, diesel and illuminating paraffin had increased during the period under review. The rand did appreciate against the US dollar, but still remained above its average for the previous period, it said.
The average rand-dollar exchange rate for September 2 to September 29 was R14.0057 compared to R13.8016 during the previous period.
The price increase means that 95 octane petrol in Gauteng will now cost R12.60 per litre and R12.12 at the coast.
The Automobile Association (AA), which correctly predicted the increases, said recently that stronger oil prices had contributed the bulk of the fuel price increase that could be expected, adding that the rand had declined early in September against the US dollar‚ but had since strengthened.
It said about 8c of the increase would come from currency weakness. "It is oil strength that has been the major contributor."
The AA said the decision by oil cartel Opec "to trim output by up to 700,000 barrels a day could‚ if accepted at the group’s November meeting‚ have the effect of stimulating international petroleum prices‚ but may also lead to increased production by non-Opec members".
"If the rand remains volatile‚ South Africans will be more exposed to changes in the oil price‚ and we advise motorists to continue to economise in the absence of a clear picture of what effect the (oil cartel) Opec decision may have.”