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Petrol Price Set To Increase

Customers can expect to pay more for petrol this month as the price is set to increase on Wednesday, 4 August.

The Department of Mineral Resources and Energy (DMRE) released a statement saying the price of petrol has increased under review.

Customers filling their tanks with diesel can expect an increase of 91 cents. The price of illuminating paraffin (wholesale) will increase by 50 cents, while the price of illuminating paraffin (SMNRP) will increase by 67 cents.

The Maximum Retail price for Liquefied petroleum gas (LPGAS) will also face an increase, as it will go up by 226 cents per kilogram.

Minister Gwede Mantashe said the prices are adjusted on a monthly basis, depending on the national and international fuel prices. 

This month's increase comes as the Rand has been appreciating against the dollar. 

This, along with an increase in the international prices of petroleum products and Brent Crude Oil also played a role in the increase. 

The Automobile Association (AA) predicted that the price of petrol would increase in 2021.

This prediction came after the Association recognised a trend in international oil prices which increased by 13% in 2020. 

“The rand has continued to advance against the US dollar, which is a pleasing outcome considering the severe beating the currency took earlier in the year. But even the currency’s ongoing strength has not been enough to contain oil’s march back towards its pre-Covid-19 price levels,” said the AA.

“While South African fuel prices are well off their record highs, the country’s economy is in a fragile state, and any shocks to international oil prices or the rand/US dollar exchange rate could hurt fuel users badly,” the Association said.

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