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Petrol price up by 28c next week

2nd March 2012

By: Sapa

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The petrol price will rise by 28 cents a litre at midnight on Tuesday, the Energy Department said on Friday.

Diesel with a 0.05 percent sulphur content will increase by 10.38 cents a litre, while that with a 0.005 percent sulphur content will go up by 9.38 cents.

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Illuminating paraffin (wholesale) will rise by four cents a litre, and the single maximum national retail price by five cents a litre.

The maximum retail price for LP gas will go up by 36 cents a kilogram.

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During the period under review, the average international product prices of petrol, diesel, and illuminating paraffin increased, and the average rand/dollar exchange rate strengthened, the department said.

The sharp increase in international crude oil prices came as a result of oil supply disruptions in Yemen, Syria, and Sudan.

News that Iran had been intensifying its nuclear enrichment programme escalated tensions between Iran and the West, further pushing up oil prices.

Saudi Arabia's increase in oil exports by nine million barrels a day replaced the lost crude oil supplies, dampening prices from February 23.

Greece's second bail-out deal from the European Union and the International Monetary Fund helped to strengthen the rand/dollar exchange rate.

China's decision to loosen monetary policy to boost economic growth also helped the exchange rate, as this improved prospects for South African exports.

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