Fuel price hike for January 2017

The year is starting off with a fuel price increase. On Friday, the Department of Energy announced that diesel and petrol prices will increase from 4 January. The fuel price adjustments are as follows:

• Petrol 93 ULP and LRP will increase by 50 cents per litre.
• Petrol 95 ULP and LRP will enjoy a lower increase of 48 cents per litre.
• Diesel 0.05% sulphur will increase by 39 cents per litre.
• Diesel 0.005% sulphur will increase by 37 cents.
• The wholesale price of illuminating paraffin will rise by 43 cents per litre.
• The single maximum national retail price (SMNRP) of illuminating paraffin will increase by 58 cents per litre.
• The maximum retail price of LPGas will increase by 106 cents (R1.06) per kilogram.

According to the department, there are a number of reasons for the increases. Among them in the Rand/US Dollar exchange rate. “The Rand strengthened very slightly against the US Dollar from R13.91 to R13.87, on average, during the period under review when compared to the previous one,” noted the Department of Energy.

In addition, there was an increase in the prices of crude oil, on average, during the period under review. Contributing to this was the decision by OPEC members to cut production from 1 January 2017, with Russia and other non-OPEC producers also agreeing to reduce production.

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