Petrol Prices to Increase from Wednesday While Diesel Price Drops

Faizel Patel – 31/08/2020

The Energy Department has announced the price of all grades petrol will increase by 1 cent per litre from Wednesday.

The prices of different both grades of diesel (0.05% sulphur) and (0.005% sulphur) decreases by 21 cents per litre while illuminating paraffin will decrease by 26 cents per litre.

The price of LP gas increases by 36 cents per kg.

The Energy Department says the main reason for the fuel price adjustments are the weakening of the rand on average, against the US Dollar (from 16.82 to 17.28 Rand per USD) during the period under review.

“During the current fuel price review, the average Brent Crude oil price increased slightly from 43.49 USD/barrel to 44.78 USD/barrel. This was mainly due to concerns that the hurricanes may lead to closure of some of the production facilities in the South Coast of the United States of America.”

Minerals and Energy Minister Gwede Mantashe has also approved an increase of 5.3 cents per litre in the retail margin of all grades of petrol to accommodate the annual wages increases of the forecourt staff in line with the MIBCO Agreement that was signed on the 13^th of December 2019.

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