The price of petrol shoots off the roof

The Department of Mineral Resources and Energy today announced a steep increase in the price of fuel on the back of higher oil prices and a strong rand.

The increases mean consumer will pay more at the pumps in July. The price of petrol (both 93 unleaded petrol (ULP) and engine lead replacement (LRP) will increase by R1,63 a litre, while consumers will pay R1,72 more for both 95 ULP and LRP.

The price of diesel will now cost R1,73 more, while the price of paraffin will surge by R2,14 a litre.

The Department in a statement said 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 (Organization of the Petroleum Exporting Countries) and Russia.

“The Rand strengthened, on average, against the US Dollar (from 18.17 to 17.43 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin of about 34.00 c/l (cents a litre),” the department said.

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 included.

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