Petrol price to increase in February

Motorists will have to dig deeper into their pockets as all grades of petrol are due to increase on Wednesday.

In a statement on Friday, the Department of Energy announced that both 93 and 95 octane petrol is set to rise by 29 cents a litre.

According to the department, the price of diesel will also increase by 21 cents a litre and the wholesale price of illuminating paraffin would increase by 17 cents a litre.

The price of LP gas will increase by 21 cents more per kilogram.

In January, a litre of petrol 93 ULP and LRP was increased by 50 cents a litre, while a litre of 95 ULP and LRP was increase by 48 cents.

The department attributed the fuel price adjustments to an increase in international factors and currency fluctuations.

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 prices of crude oil also increased, on average, during the period under review.

Oil prices rose on news that key crude exporters, including Saudi Arabia and Russia, were cutting production to reduce excess supply of crude.

Furthermore, the US inventory data showed that the global market was tightening due to lower production by OPEC and other exporters.

The rand also strengthened against the US Dollar from R13.87 to R13.60, on average, during the period under review when compared to the previous one.

This reduced the price increases by 12 cents per litre.

Source: South African Government News Agency