Petrol price to increase by 22 cents ahead of festive travel

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The price of petrol for both 93 and 95 grade will increase by 22 cents per litre on Wednesday, according to an announcement from the department of mineral resources and energy.

The inland price of 95 unleaded petrol will therefore rise to R16.30 per litre. The coastal price of 95 unleaded will be R15.66 per litre.

Diesel with 0.05% sulphur content will fall by 14.95 cents per litre. Diesel with sulphur content will fall by 15.95 cents a litre making the inland price of diesel R14.53 per litre and R13.99 at the coast.

The wholesale price of illuminating paraffin will decrease by 17.95 cents per litre. The maximum retail price for LPGAS will increase by 102 cents per kg.

Economic factors that had an impact on the the petrol price included an average increase in the international product prices for petrol in November.

The rand strengthened against the US dollar during November.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors included the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.

“The main reason for the petrol price increases is that the average Brent Crude oil price increased from 59.72USD to 62.68USD per barrel during the period under review. The Crude oil prices increased following signals of the extension of Organisation of the Petroleum Exporting Countries (OPEC) production cut into mid-2020, and signs of a new round of trade talks between China and the United State of America.

“The diesel prices decreased due to seasonal decline in demand and ample refinery supplies. Furthermore, the weak domestic diesel demand in India pushed larger-than-usual diesel flows into the global market.

“The rand appreciated, on average, against the US Dollar (from 14.93 to 14.80 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 6.12 c/l, 6.24 c/l and 6.23 c/l respectively.”

The Citizen