Cape Town – The price of fuel is set to increase on Wednesday, with petrol going up 53c/l and diesel by up to 80c, reports said on Monday.
Illuminating paraffin price will be hiked by R1.01 a litre, while the maximum LPGas retail price will be lowered by R1.24.
According to Sowetan Live, the department of mineral resources and energy reported that the rand appreciated from 15.91 to 15.50 against the US dollar during the period under review, leading to a lower contribution to a lower basic fuel price. However, increased crude oil prices and a negative slate levy balance of R3.49bn necessitated the price hikes.
Local fuel prices are determined by international oil prices – as well as the dollar-rand value, as South Africa buys oil in dollars.
According to The South African, the increase comes after Brent crude skyrocketed over the past month, partly due to tensions between Russia and Ukraine – a part of the world rich in oil.
“Concerns regarding the tension between Russia and Ukraine have also affected crude oil prices negatively as the area is a crucial oil and gas infrastructure hub,” News24 quoted Minister of Mineral Resources and Energy Gwede Mantashe as saying.
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