New Year’s petrol, diesel price hike shock for motorists

SOUTH African motorists are set to pay more for fuel as both petrol and diesel prices will increase tomorrow.

Minister of Mineral Resources and Energy Gwede Mantashe announced an adjustment of fuel prices in a statement yesterday.

He said that the increases were based on current local and international factors.

The fuel prices schedule for the different zones will be published today.

Petrol (both 93 ULP and LRP) will increase by 43cents per litre while (both 95 ULP and LRP) will rise by 40c a litre.

Diesel ( 0.05% sulphur) will increase by 55c per litre with diesel (0.005% sulphur) increasing by 54c per litre.

Illuminating paraffin at wholesale will also increase by 55c per litre.

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 importation costs, including shipping costs.

According to the Department of Mineral Resources and Energy statement released, there were various reasons for the fuel price adjustments.

These including the rand, US dollar exchange rate – the South African currency had appreciated on average against the dollar.

In addition, the average brent crude oil price increased by almost 20% from $42.10 to $49.20 a barrel during the period under review.