Faizel Patel – 31/08/2021
The Energy Department has announced that the price of both grades of petrol will increase by 4 cents per litre from Wednesday, 1 September.
The prices of different grades of diesel (0.05% sulphur) decreases by 15 cents per litre and (0.005% sulphur) by 14 cents per litre while illuminating paraffin will decrease by 15 cents per litre.
The price of LP gas increases by 94 cents per kg.
The Energy Department says the main reason for the fuel price adjustments is the average Brent Crude oil price decreased slightly from 74.00USD to 72.50USD
per barrel during the period under review.
“Analysts said the fall in crude oil prices was mostly due to trimming (or reduction) of positions by traders amid a weak spot demand which was fuelled by concerns that the coronavirus Delta variant might lead to some travelling restrictions.”
The Energy Department says an increase of 8.78 c/l (i.e. from 6.58 c/l to 15.36 c/l) will also be implemented into the price structures of petrol and diesel in line with the Self-Adjusting Slate Mechanism rules effective from the 1st of September.
“Mineral Resources and Energy Minister Gwede Mantashe also approved a 5.7 cents per litre increase in the price structures of petrol to accommodate the wages increase for
the Forecourt employees in line with the Motor Industry Bargaining Council (MIBCO) Agreement.”
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.
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