Motorists warned of February petrol price hike
PETROL prices are set to increase at the start of the new month on Wednesday, 1 February.
According to a media statement released by the department of energy, consumers will be expected to pay 29 cents more for petrol and 21 cents more for diesel.
Prices of fuel were adjusted due to the contribution of the Rand/US Dollar exchange rate. The Rand strengthened against the US Dollar from R13.87 to R13.60 on average, during the period under review when compared to the previous one. This reduced the price increases by 12 cents per litre.
The price increase came on the back of crude oil as oil prices rose on news that key crude exporters, including Saudi Arabia and Russia, were cutting production to reduce excess supply of crude. “Furthermore, the US inventory data showed that the global market was tightening due to lower production by OPEC and other exporters,” read the media statement.
The average increase in the international prices of all petroleum products is also a key factor in the increase. Based on average, in the international markets during the period under review, the Basic Fuel Price (BFP) of all the products increased in line with the price of crude oil.
