Faizel Patel, Radio Islam News – 30-07-2018
The Energy Department has announced the price of petrol will increase by 1 cent a litre from 1 August while diesel will cost 4 cents a litre less.
Illuminating paraffin increases by 4 cents per litre and LP Gas will increase by 17 cents per kg.
Minister of Energy Jeff Radebe says the main reasons for the fuel price adjustments are due to the contribution of the Rand/US Dollar exchange rate
“The Rand depreciated, on average, against the US Dollar (from 13.29 to 13.50 Rand per USD) during the period under review when compared to the previous one. This led to a higher contribution to the Basic Fuel Prices (BFP) on petrol, diesel and illuminating paraffin by just over 10.00c/l.”
However Radebe says there was a slight decrease in the prices crude oil.
“The average Brent Crude oil price decreased slightly from 74.26USD to 72.15USD per barrel during the period under review. The oil markets started falling since last week as OPEC and Russia increased production. The commitments from Russia and Saudi Arabia to increase production and improved supply from Libya continue to weigh on oil prices.”
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that country imports both crude oil and finished products at a price set at the international level, including importation costs.
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