A 12 per cent increase in global oil prices since the start of September has been cited by the South African Department of Energy as a factor in the countrys latest round of fuel price rises
Improved compliance with the OPEC production freeze by member countries, slower US drilling activity, and evidence of falling stocks of crude oil in the US have contributed to oil prices in September climbing above US$55 a barrel. In line with the crude oil price rise, the price of petroleum in international markets has also increased, impacting on South African fuel prices.
The third factor which the department cites for the fuel price increase is the rand appreciating against the US dollar in August, although there has been a slight slip in the average exchange rate during September.
Customers across the entire South African fuel market will be affected by the hike with the price of petrol, diesel, illuminating parrafin and LPG all increasing for South African consumers and businesses. Both grades of petrol will go up by 67 cents per litre and the wholesale price of diesel will increase by 44 cents per litre.
