The price of both 93 and 95 octane unleaded petrol (ULP) and lead replacement petrol (LRP) will increase by 19c/l in August, the energy department said on Friday.
The price of diesel 0.05 percent sulphur will increase by 29c/l and the price of 0.005 percent sulphur will increase by 30c/l.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs… The Rand depreciated slightly, on average, against the US Dollar during the period under review. This led to higher contribution to the Basic Fuel Price on petrol, diesel and illuminating paraffin by 11.15c/l, 10.93c/l and 10.88c/l, respectively,” the department said in a statement.
“The prices of petroleum products increased, on average, in the international markets in line with the higher crude oil prices. The Crude oil prices rose, partly on drawdowns of global inventories including in the closely watched US market. The market has been anticipating a return to balance at some point this year and there are signs now that it is happening.”
The department said that the current expectation was that the rising crude oil prices would “hit a ceiling as higher prices may tempt OPEC members to start producing above the output cuts agreed late last year and reconfirmed in June this year”.
Wholesale Illuminating Paraffin will increase by 26c/l; and Maximum LPGas Retail Price will increase by 40c/kg.
“The fuel pricing schedule for the different zones will be published on Tuesday, 01 August 2017.”
The Automobile Association (AA) said the Rand accounted for about two-thirds of the hike, with a slight uptick in international fuel prices contributing the remainder.
“While the Rand continues its volatile trend, international fuel prices have surged strongly in the past ten days. If this upwards movement continues into August, fuel users can expect further bad news,” the AA concluded.