All grades of petrol and diesel are anticipated to increase in price beginning on New Year’s Day, which will result in South African drivers paying more on their way home or to work.
It is also projected that the price of LP Gas will rise in tandem with the decrease in the price of paraffin. The announcement was made by the Department of Minerals and Petroleum Resources.
According to the department, the price of petrol 95 (ULP & LRP) is expected to increase by 12 cents, while petrol 93 (ULP & LRP) will increase by 19 cents.
Diesel with 0.05% sulphur will increase in price by 7 cents, while diesel with 0.005% sulphur will increase in price by 10 cents.
The single maximum national retail price for illuminating paraffin will drop by 13 cents, while the wholesale price will drop by 9 cents.
It is anticipated that the maximum LPGas retail price will increase by 13 cents.
Brent crude oil price rises
As a result, starting on Wednesday, a litre of petrol 95 ULP, which in Gauteng currently costs R21.47, will now cost R21.59.
A litre of 95 petrol at the coast will now cost R20.80 per litre starting in January, after it cost R20.68 in December.
“The average Brent crude oil price increased slightly from $72.70 (R1 363) to $72.78 during the period under review,” according to the department.
According to the department, the primary causes are the December production cutback by Opec+ (Organisation of the Petroleum Exporting Countries) and the ongoing oversupply by non-Opec producers in the face of weak global economic growth.
Weaker rand contributed to hikes
“The average international product prices of petrol followed the increasing trend of crude oil, while the prices of middle distillates decreased slightly because of higher inventories for the winter season in the northern hemisphere.
“These factors led to higher contributions to the basic fuel prices of petrol and diesel by 9.33 c/l [cents a litre] and 2.93 c/l, respectively, and lower contributions to illuminating paraffin by 18.92 c/l.”
According to the department, the rand lost value relative to the dollar during the period under review, falling from R17.93 to R18.11 on average.
“This led to higher contributions to the basic fuel prices of petrol, diesel, and illuminated paraffin by 10.58 c/l, 11.11 c/l and 10.90 c/l, respectively,” the department explained.
