(Ecofin Agency) - The South African Department of Energy has announced that the price of all grades of petrol and diesel will increase from October 5, 2016.

According to the department, the price of Unleaded petrol 93 (ULP) and Lead Replacement Petrol (LRP) will rise by 44 cents per litre, petrol 95 ULP and LRP will increase by 43 cents per litre while diesel will increase by 23 cents per litre.The wholesale price of illuminating paraffin will also increase by 22 cents per litre, and the maximum retail price of LP Gas is to increase by 58 centre per kilogram.

“The Rand strengthened against the US Dollar, on average, during the period under review but, was higher than the average of the previous review period. The reason for this is that the Rand/Dollar exchange rate was R14.60 at the beginning of the review period on 1 September 2016 and averaged to R14.01 on 29 September 2016,” the department said stating the reason behind the adjustment.

The increase is also as a result of the increase in the prices of petrol, diesel and illuminating paraffin on the global market.“A key factor that contributed to the increase in the prices of crude oil was the sharp fall in US crude stocks which pushed the prices up ahead of an oil producers meeting in Algeria, which was planned to take place on 28 September 2016 and speculation of a production freeze,” the department added.

South Africa's fuel prices are regulated every month, driven by international and local factors. The country imports crude oil at a price set at the international level, including shipping costs, SA news reports.

Anita Fatunji