The Department of Mineral Resources and Energy has announced a petrol price increase effective from Wednesday, September 6, 2023.
Here are the fuel prices effective from 6 September 2023:
– Both both 93 and 95 unleaded petrol will increase by R1.71 cents a litre.
– The wholesale price of diesel will increase by R2.84 a litre.
– The illuminating paraffin (wholesale) prices will increase by R2.78 a litre.
– LP Gas will increase by R2.26 per kilogram.
– 95 unleaded petrol in Gauteng will cost R24.54 a litre.
– Diesel in Gauteng will cost R23.05 a litre.
The main reasons for the fuel price adjustments are due to:
1. Crude oil prices
The average Brent Crude oil price increased from 79.75 US Dollars (USD) to 84.78 USD during the period under review, because of tightening supply resulting from production cuts by Saudi Arabia.
2. International petroleum product prices
The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to the following factors:
(a) High prices of petrol are as a result of low inventories and refinery outages, which affected the production of blending components used in summer grade petrol making it more expensive to produce.
(b) Diesel and paraffin prices increased because of lower shipments of Russia’s Urals crude oil which is rich in middle distillates, as well as rising demand of middle distillates ahead of the winter season in the Northern Hemisphere.
(c) LPGas increased because of higher prices of Propane and Butane.These led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 135.41 c/l, 253.42 c/l and 247.13 c/l, respectively.
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