Petrol price to rise 16 cents a litre

The retail price of all grades of petrol will rise by 16 cents a litre next week, the Minerals and Energy Department said on Friday.

In Gauteng, 95 grade petrol will rise to R7,51 a litre.

There would, however, be a decrease in zone differentials (transport cost) in C-Zones, the department said.

“The National Energy Regulator of South Africa on April 30 2009 announced an average tariff reduction of 10,38% in the transport cost of petroleum transported by pipeline from Durban to the C-Zones.

“These decreases will range from 0,5 cents a litre [for example Pietermaritzburg] to 1,4 cents a litre [for example Gauteng].”

The country’s petrol prices are determined partly by zone differentials that are based on the cost of transporting fuel to various parts of South Africa.

When the pipeline tariff decreases, so does the price paid to all fuel producers.

The wholesale price of diesel with a 0,05% sulphur content will decrease by 12,9 cents a litre next week.

Diesel with a 0,005% sulphur content will decrease by 13,9 cents a litre.

The wholesale price of illuminating paraffin will decrease by nine cents a litre and the single maximum national retail price for illuminating paraffin will come down by 12 cents a litre.

The statement noted that the minister of minerals and energy had announced an increase of 1,5 cents a litre to 3,0 cents a litre in the Incremental Inland Transport Recovery levy with effect from June 3 2009.

During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased, the department said.

However, the average rand/United States dollar exchange rate strengthened when compared to the previous period.

“The average rand/US dollar exchange rate for the period April 30 2009 to May 29 2009 was 8,4371 compared to 9,1531 during the previous period,” the statement said.—Sapa

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