The Department of Energy informs announced this week that the fuel price will increase by between 25 and 29 cents this week.
A litre of 93 (ULP and LRP) will rise by 25 cents, while a litre of 95 (ULP and LRP) will rise by 29 cents.
This means that consumers, who in September paid R13.72 for a litre of 95 (ULP and LRP) in Gauteng will now pay R14.01. Consumers in the coast will now pay R13.52 a litre.
Both grades of diesel (0.05% sulphur) and 0.005% sulphur will increase by 42 cents a litre, while the price of illuminating paraffin (wholesale) will go up by 39 cents a litre.
The prices will be effective midnight on Tuesday.
The cost of illuminating paraffin (SMNRP) will increase by 52 cents, while the maximum retail price of LPGas will go up by 39 cents.
The department said the average international product prices of petrol, diesel and illuminating paraffin increased during the period under review.
In September, the price of petrol rose by 67 cents.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.
The main reasons for the fuel price adjustments are:
- Rand/US Dollar Exchange rate
The Rand appreciated, on average, against the US Dollar during the period under review. However, the average R/$ exchange for September 2017 was 13.08 compared to 13.21 in August 2017. In other words, the average R/$ was lower in September when compared to August. This contributed to the lowering of the Basic Fuel Prices of all petroleum products by less than 4.00 cents per litre.
- The prices of Petroleum Products in the International Markets
The international prices of petroleum products increased on average during the period under review. This was in line with higher crude oil prices. However, the diesel prices rose faster than the prices of petrol due to sharp decrease in diesel stocks in the US. The petrol prices were very strong through August due to impact of Hurricane Harvey.
- Higher Oil Prices
The oil prices increased by 12% since the beginning of September 2017, mainly due to, (a) Improved compliance on production freeze by OPEC countries, (b) Evidence that US drilling activity and production is not rising as was expected, and (c) Evidence that stocks of crude oil in the US are falling faster than anticipated.
Based on current local and international factors, the fuel prices for October 2017 will be adjusted as follows:
Petrol (93 Octane, ULP and LRP): 25.00 c/l increase;
Petrol (95 Octane, ULP and LRP): 29.00 c/l increase
Diesel (0.05% sulphur): 42.00 c/l increase;
Diesel (0.005% sulphur): 42.00 c/l increase;
Illuminating Paraffin (wholesale): 39.00 c/l increase;
SMNRP for IP: 52.00 c/l increase;
Maximum LPGas Retail Price: 39.00 c/kg increase