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Fuel price set to increase from Wednesday

This is the eighth consecutive hike since the beginning of the year.

Petrol station. Picture: EWN

JOHANNESBURG - The Energy Department has announced that the price of 95 octane petrol will increase by 18 cents per litre from Wednesday, 2 October. This brings the price of 95 octane to R16.21 c/l inland.

This is the eighth consecutive hike since the beginning of the year.

The increase was predicted by the Automobile Association on the back of oil strikes in Saudi Arabia.

The department said the price of 93 octane, however, will drop by 4 cents per litre.

Diesel and Illuminating paraffin will increase by 25 cents per litre.

The country'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 importation costs, like shipping costs.

In a statement, the department explained the main reason for the fuel price increases was higher oil prices during the period under review when compared to the previous one.

"The average Brent Crude oil price increased from $58.86 US per barrel to $62.96 per barrel during the period under review."

The department also cited the attacks on Saudi Arabia.

"The oil prices rose sharply after drones attacked two major oil facilities in Saudi Arabia namely, Abqaiq facility, which is the largest crude oil stabilisation plant in the world, and the Khurais oil field, which is the second-largest oil field in Saudi Arabia, operated by Saudi Aramco on 14 September 2019.

"The closure of these operations had an impact on nearly five million barrels of crude processing per day, affecting 5% of the world’s daily oil production."

The rand appreciated on average against the US Dollar from R15.17 to R14.90 per dollar during the period under review when compared to the previous one.

The fuel prices schedule for the different zones will be published on Tuesday, 1 October 2019.

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