Fuel price to rise by 29c a litre

THE retail price of both 93 and 95-octane petrol is set to rise by 29 cents a litre on Wednesday, the energy department announced yesterday.

According to the department, the price of diesel will increase by 21c a litre and the wholesale price of illuminating paraffin will rise by 17c a litre.

Those wanting to buy LP gas will pay 21c more per kilogram.

The department attributed the fuel price adjustments to an increase in international factors and currency fluctuations.

International factors include the fact that South Africa imports crude oil and finished products at a price set at the international level, including shipping costs.

The prices of crude oil increased, on average, during the period under review.

“Oil prices rose on news that key crude exporters, including Saudi Arabia and Russia, were cutting production to reduce excess supply of crude,” the department said in a statement.

“Furthermore, the US inventory data showed that the global market was tightening due to lower production by the Organisation of Petroleum Exporting Countries (Opec) and other exporters.”

The rand also 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. – ANA