Reasons why the petrol price increased
The Department of Energy urges motorists to use fuel efficiently by applying fuel saving tips.
You go to your local petrol station to fill up and notice the price has increased once again. You panic and don’t understand why this happened.
According to the energy department there are reasons why the price of petrol goes up.
The contribution of the Rand/US Dollar exchange rate: The Rand depreciated, on average, against the US Dollar (from 11.99 to 12.51 Rand per USD) during the period under review.
The increase in the prices of crude oil: The main reason for the higher crude oil prices is the sustained production cuts by the Organisation of the Petroleum Exporting Countries (OPEC). The ongoing crisis in Venezuela also led to falling oil production and exports from there. However, there are indications that OPEC and its allies may relax outputs constraints at its June meeting.
Import prices of Petroleum Products: The international prices of petroleum products increased on average during the period under review. This was in line with the higher crude oil prices.
The Department of Energy urges motorists to use fuel efficiently by applying fuel saving tips such as using lift clubs and public transport whenever it’s possible to do so; and also by planning all the trips beforehand, among others.
