South Africans will have to pay more for 95 octane petrol and diesel from Wednesday.
The department of energy has confirmed that from October 2, the price of 93 petrol – both unleaded and lead replacement – will decrease by 4c per litre.
However, 95 octane unleaded petrol will increase by 18c per litre, diesel (0.05% sulphur) by 25c per litre, diesel (0.005% sulphur) by 25c per litre and illuminating paraffin by 25c per litre.
The LP gas retail price will decrease by 17c per kilogram.
Mineral resources and energy minister Gwede Mantashe said the main reason for the fuel price increases was higher oil prices during the period under review when compared to the previous one.
SA’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
The department said international factors included the fact that SA imported both crude oil and finished products at a price set at the international level, including importation costs, such as shipping costs.
The department said the average Brent crude oil price increased from $58.86 a barrel to $62.96 a barrel during the period under review.
It said oil prices rose sharply after drones attacked two major oil facilities in Saudi Arabia on September 14.
“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 department said.
The department said the rand appreciated on average against the US dollar from R15.17 to R14.90 per dollar during the period under review when compared with the previous one.
“This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by more than 17c per litre (17.00 c/l).
“Had it not been for the stronger rand during this period, the impact of the attacks on Saudi facilities on prices would have been more severe.”
The department said the fuel price schedule would be published on Tuesday.
SOURCE: TMG DIGITAL