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Petrol price hike this week
Motorists will have to deep a little deeper into their pockets this month due to the adjustment of fuel prices which will come into effect on 4 January (tomorrow).
In a statement on 29 December, the Department of Energy announced that a litre of petrol 93 ULP and LRP) will increase by 50 cents/litre, while a litre of 95 ULP and LRP will increase by 48 cents.
Based on current local and international factors, the fuel prices for January 2017 will be adjusted as follows:
1. Petrol (93 ULP and LRP):50.00c/l increase;
2. Petrol (95 ULP and LRP):48.00c/l increase;
3. Diesel (0.05% Sulphur):39.00c/l increase;
4. Diesel (0.005% Sulphur):37.00c/l increase;
5. Wholesale price of Illuminating Paraffin:43.00c/l increase;
6. SMNRP of Illuminating Paraffin:58.00c/l increase; and
7. Maximum Retail Price of LPGas: 106.00c/kg increase.
The Rand/US Dollar exchange rate contributed to the increase of the petrol price, the department said.
“The Rand strengthened very slightly against the US Dollar from R13.91 to R13.87, on average, during the period under review when compared to the previous one.”
A key factor that contributed to the increase in the prices of crude oil was the fact that OPEC members agreed to cut production by 1.2 million barrels per from 1 January 2017 during their meeting that was held in Vienna, Austria, on 30 November 2016, added the department.
“Furthermore, Russia and other Non-OPEC producers also agreed to cut production by 600 thousand barrels per day.”
