WEAK RAND HAS A MIXED IMPACT ON PETROL PRICE

The Department of Energy recently announced that 93 grade petrol will decrease by two cents per litre from October 7. There will, however, be increases in 95 unleaded, diesel and illuminating paraffin. The department noted the main reason for the price hike was the weakening of the rand against the dollar.

The price of 95 ULP and LRP petrol is set to increase by 4c a litre. The price of diesel receives the biggest increases; 0.05% sulphur and 0.005% sulphur will increase by 53c and 51c a litre respectively.

The wholesale price of illuminating paraffin will increase by 50c a litre, and of SMNRP (single maximum national retail price) illuminating paraffin by 67c a litre. The maximum retail price for LPGAS (Liquefied petroleum gas) will increase by 11c a kilogram.

The Energy Department said in a statement the average international product prices of petrol decreased, while diesel and illuminating paraffin increased during the period under review.

The hike in the cost of diesel will not only affect motorists who have opted away from petrol, but will also have a knock-on effect on items such as food. This is because virtually all commodities consumed by South Africans are moved by road.

The fuel price changes will come into effect at midnight on Wednesday.

"The average rand/US dollar exchange rate for the period 28 August 2015 to 1 October 2015 was R13.594/$ compared with R12.8609/$ during the previous period."

Posted in Blog, petrol price.