Motorists may have been given a brief break from the rising petrol prices in 2018, but this month fuel costs will be increasing again. Locals will have to pay R14.82 per litre of 95 Petrol, 74 cents more than the previous price. Diesel will increase by 91 cents and illuminating paraffin by 76 cents.
The petrol price increase will be effective from midnight tonight.
The Rand to US dollar exchange rate has been one of the greatest factors in the increased fuel prices. In the period under review, the rand appreciated against the dollar moving from R13.94 to R13.80.
Minister of Energy Jeff Radebe explains, “This lowered the contribution to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 7.50 c/l, 8.84 c/l and 8.78 c/l respectively.”
Brent crude oil, meanwhile, has increased in price from 60.00 USD to 64 USD a barrel. The price of crude oil has rapidly increased due to the Organisation of Petroleum Exporting Countries (OPEC), other non-OPEC producers and Russia reducing oil supply in the global market by 1.2- million barrels per day.
Radebe says that there is a second factor which has caused higher oil prices.
“The ongoing US sanctions against Iran and the recently announced US sanctions on Venezuela and the disruptions from the Safaniyah offshore oil field in Saudi Arabia after a power cable was cut.”
Prices of petroleum products increased on average and further contributed to the rise in petrol prices.
“This increased the contribution on the Basic Fuel Prices of petrol, diesel and illuminating paraffin by more than 81.00 c/l, 100 c/l and 84.00 c/l.”
Petrol price increases
93 Petrol – 74 cents
95 Petrol – 74 cents
Diesel (0.05% sulphur) – 91 cents
illuminating Parafin – 76 cents
— Department of Energy (@Energy_ZA) March 4, 2019