Petrol price pressure builds up

2014-06-30 00:00

CAPE TOWN — Consumers are set to face more pressure on their wallets as the price of petrol will rise again following two months of decreases.

The Department of Energy announced on Friday that all grades of petrol and diesel will increase on Wednesday.

Petrol (93 ULP and LRP) will increase by 29 cents a litre and 95 ULP and LRP will increase by 31 cents a litre.

The price of both diesel with 0,05% sulphur and diesel with 0,005% sulphur will go up by 14 c/l.

The illuminating paraffin price would rise by 31 c/l, while the maximum retail price for LP Gas would increase by 58 c/l.

The price of petrol fell by a combined 33 c/l in Gauteng in May and June.

The Department of Energy has urged all motorists to continue implementing fuel efficiency measures, such as using public transport and lift clubs to ensure that they save fuel.

Why is petrol so pricey?

South Africa’s petrol price is directly linked to the price of petrol quoted in US dollars at petroleum export-orientated refining centres in the Mediterranean area, the Arab Gulf and Singapore.

This means the domestic price is influenced by:

• international crude oil prices,

• international supply and demand balances for petroleum products and;

• the rand/U.S. dollar exchange rate.

The department said the increase in the prices of all the petroleum products is due to changes in international factors, namely, crude oil prices, the rand/dollar exchange rate and the prices of finished products.

The rand depreciated against the dollar from R10,40 to R10,68 during the period under review.

Furthermore, the crude oil price increased on average during the period under review and climbed to its highest level since September last year.

The crude oil price peaked at above $115 per barrel on June 19, the department said in a statement. — Fin24.

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