The price of both grades of petrol - 93 octane and 95 octane unleaded (ULP) and lead replacement petrol (LRP) - will increase by 54c/l with effect from midnight on Tuesday, the energy department has announced.
Diesel 0.05 percent sulphur will increase by 1c/l, while the price of diesel 0.005 percent sulphur would remain unchanged, the department said in a statement on Sunday.
The wholesale price of illuminating paraffin would increase by 3c/l and the single maximum national retail price (SMNRP) of illuminating paraffin would increase by 4c/l. The maximum retail price for LPGas would increase by 84c/kg.
In a later statement on Sunday, Energy Minister Jeff Radebe said the main reasons for the increased fuel prices were that the rand on average had strengthened slightly against the US dollar from 14.3871 to 14.1401 rand per dollar. The settling of contagion risks from emerging markets provided a foundation for the rand's strengthening trend. This decreased the contribution on the basic fuel price of petrol, diesel, and illuminating paraffin by about 13.00c/l.
The average Brent Crude oil price increased from $66.03 per barrel to $70.82 per barrel during the period under review. The oil prices rose to the highest level in almost six months as the US government decided to eliminate sanction waivers that allowed buyers to import Iranian crude oil.
Geopolitical issues in the Middle East and Venezuela had provided added upward impetus to oil as output curbs by the Organisation of Petroleum Exporting Countries (Opec) and its allies to keep supplies in check. This led to adjustments the contribution on the basic fuel price of petrol, diesel, and illuminating paraffin by about 53c/l, 1.c/l, and 2.c/l respectively, he said.