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Johannesburg - Motorists should brace for a fuel price hike from 1 February.
The Department of Energy (DoE) issued a statement on Friday indicating that petrol prices for both 93 and 95 unleaded petrol and leaded petrol will go up by 29 cents per litre (c/l).
The price of diesel will increase by 21c/l. The wholesale price of illuminating paraffin is set to increase 17c/l and the single maximum national retail price of illuminating paraffin will increase by 22c/l.
Liquefied petroleum gas will go up 21 cents per kg (c/kg).
The DoE explained that the strengthening rand, which was up on average from R13.87 to R13.60 to the dollar, reduced the price increases by 12c/l.
News that crude exporters Saudi Arabia and Russia would be cutting production also contributed to the price increases.
The fuel prices schedule for the different zones will be published on 31 January 2017.
Fin24 previously reported that the price hike would not be as much as expected, given the rand’s strength.
READ: Robust rand reduces petrol price pressure
The Automobile Association (AA) also warned that motorists
should not rely on a “softer fuel price position” in the medium term as the
rand remains vulnerable to political and economic shocks.
Further, international oil prices are on an upward trend and there is uncertainty about where the oil price will find its equilibrium, given production cuts.
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