/ 24 August 2004

Petrol price likely to rise by 22 cents a litre

The retail price of petrol is expected to rise by 22 cents a litre next week, the Minerals and Energy Department said on Tuesday.

It said in a statement the wholesale price of diesel was likely to increase by between 32 and 37 cents a litre.

The single maximum national retail cost of illuminating paraffin was expected to go up by 45 cents a litre.

The department said the anticipated fuel price rises from midnight next Wednesday were the result of a sharp increase in the international prices of crude oil.

This could be ascribed to the political tension in the Middle East, the question of sustainable international crude oil production, and the high demand for crude oil by China.

Other factors included uncertainty about the future of the Russian oil producer Yukos, and efforts by crude oil producing countries to increase earnings from crude oil sales.

The strengthening of the United States dollar against other foreign currencies, including the rand, contributed to the latest anticipated increases, the department said. – Sapa