SOUTH AFRICA - ENERGY MINSTER CONFIRMS PETROL PRICE SET TO INCREASE BY 11 CENTS ON WEDNESDAY

Minerals and energy minister Gwede Mantashe said on Monday that fuel prices would increase from Wednesday.

Petrol, (95 ULP and LRP;  93 ULP and LRP) would increase by 11 cents per litre; diesel (0.05% sulphur and 0.005% sulphur) would increase by 26 cents per litre, illuminating paraffin would increase by 24 cents per litre and SMNRP for IP by 32 cents per litre, said Mantashe.

South Africa’s fuel prices are adjusted on a monthly basis, taking into account national and international factors.

According to the department, the main reason for the increases is the weakening of the rand against the U.S. dollar on average during the period under review. The rand depreciated on average against the US dollar from 14.05 to 15.15 rand per dollar during the period under review compared to the previous one.

This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by more than fifty cents (50.00 c/l), according to the department.

The average Brent Crude oil price decreased from 64.10 US dollars (USD) per barrel to 58.80 USD per barrel during the period under review.

The oil prices remained near seven month lows due to escalating trade tensions between China and the United States of America.

Brent crude oil prices lost more than 9% after the USA vowed to impose new tariffs on Chinese imports and China targeting USA agricultural cargoes. Furthermore, traders were worried that the dispute between the world’s two biggest oil buyers would dent demand.

via - IOL