At midnight tomorrow, petrol prices will rise by up to 11 cents per litre. Similarly, diesel will increase by up to 42 cents per litre, according to the Department of Energy.
‘Petrol prices will increase by up to 11 cents per litre’
Petrol and Diesel Price Increases
In a statement made on Sunday, the department said that 95 Grade Unleaded Petrol (ULP) and Lead Replacement Petrol (LRP) will increase by 8c/l. Moreover, 93 Grade ULP and LRP will increase by 11c/l. Whereas, the price of diesel will go up by 41 – 42c/l.
‘The price of diesel will increase by up to 42c per litre
Illuminating Paraffin and LP Gas Price Hikes
At the same time, the wholesale cost of illuminating paraffin will go up 43c/l, whereas the single maximum national retail price of will rise by 57c/l. Furthermore, the maximum retail price of Liquefied Petroleum (LP) gas will increase by up to 12c/kg.
‘Fuel price hikes are due to the higher price of oil’
Factors behind Fuel Price Hikes
These fuel price hikes are due to petroleum product price increases in international markets, as well as the higher price of oil.
“The strengthening of the rand against the US Dollar during the period under review … cushioned the fuel prices by over 17c/l‚” explained the department.
Since the start of the year, motorists have been hit with a number of petrol price increases. In June, the price of all grades of petrol was hiked by 52c/l, with diesel going up by an excessive 76/l.
‘Markets continue to digest the consequences of Brexit’
Persistent market instability puts fuel prices at risk, warned the Automobile Association (AA).
“We expect further volatility in the short to medium term as world markets continue to digest the consequences of the UK’s referendum to leave Europe [Brexit]. This means that any additional political or economic shocks are likely to have a strong impact on South African fuel users,” the AA said on Friday in a statement.