A media statement issued by the Department of Energy on the adjustment of fuel prices tells of a forth coming increase which will take effect on the 6th of July 2016.
According to the department, the reasons for the price adjustment ranges from the strengthening of the Rand against the US Dollar, to the price increase of petroleum products in the international market.
“The Department of Energy informs the public of the fuel price adjustments for July 2016. 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 shipping costs.
The main reasons for the fuel price adjustments in July 2016 are:
(a) the strengthening of the Rand against the US Dollar during the period under review which cushioned the fuel prices by over 17.00c/l;
(b) the slight increase on average in the prices of petroleum products in the international markets;
(c) And, an increase in the prices crude oil, on average, during the period under review mainly due supply disruptions in Canada, Venezuela, Libya, Nigeria and Iraq,” read the statement.
Based on the above, the department urged motorist and the general public to “use these petroleum products efficiently during these tough economic times.”
With regards to the aforementioned local and international factors, the department highlighted that the fuel prices for July 2016 will be adjusted as follows:
Petrol (93 ULP and LRP): 11.00c/l increase;
Petrol (95 ULP and LRP): 8.00c/l increase;
Diesel (0.05% Sulphur): 42.00c/l increase;
Diesel (0.005% Sulphur): 41.00c/l increase;
Wholesale price for Illuminating Paraffin: 43.00c/l increase;
SMNRP for Illuminating Paraffin: 57.00c/l increase; and
Maximum Retail Price for LPGas: 12.00c/kg increase.
It added that the prices will be different in other fuel pricing zones due to the adjustment to the transportation costs. The department will the public about the pricing schedule for the different zones tomorrow.