SOUTH AFRICA - REMINDER THE PRICE OF PETROL INCREASES ON WEDNESDAY

The price of petrol will increase by 43c to 44c a litre on Wednesday.

The department said all grades of petrol and diesel will increase, with 93 ULP and LRP rising by 44c a litre and  95 ULP and LRP by 43c per litre, while diesel (0.05% Sulphur as well as 0.005% Sulphur) will increase by 23c a litre.

The department said the rand/dollar exchange rate was the main reason for the fuel price adjustments.

The wholesale price of illuminating paraffin will increase by 22c a litre, SMNRP of illuminating paraffin will increase by 30c a litre and the maximum retail price of LP Gas will increase by 58c a kilogram.

The department said the rand had strengthened against the US dollar on average during the period under review but, was higher than the average of the previous review period. The exchange rate was R14.60/dollar at the beginning of the review period on 1 September 2016 and averaged to R14.01/dollar on 29 September 2016.

The fuel price adjustments were also due to the increases in the prices of petrol, diesel and illuminating paraffin, on average, in the international markets during the period under review.

The third factor influencing the fuel price adjustments was the increase in the prices of crude oil, on average, during the period under review.

“A key factor that contributed to the increase in the prices of crude oil was the sharp fall in US crude stocks which pushed the prices up ahead of an oil producers meeting in Algeria, which was planned to take place on 28 September 2016 and speculation of a production freeze,” the department said.

VIA - enca.com