(Ecofin Agency) - In South Africa, the Department of Energy has announced that from July 5, 2016, the retail price of both grades of petrol will increase by about 11 cents per litre, while diesel will rise by about 42 cents per litre.

According to the department, 95 unleaded petrol (ULP) and Lead Replacement Petrol (LRP) will rise by 8 cents per litre, while 93 ULP and LRP will increase by 11cents per litre. Diesel is to increase by between 41 and 42 cents.

The wholesale price of illuminating paraffin is to go up by 43 cents per litre, while the single maximum national retail price will rise by 57 cents per litre. Maximum retail price of Liquefied petroleum gas will also increase by 12 cents per kilogram.

These increases are as a result of the higher oil price and a small increase in the prices of petroleum products in international markets.

“The strengthening of the rand against the US Dollar during the period under review ... cushioned the fuel prices by over 17c/l‚” the department told fin24.

Motorists in the country have facing a number of petrol price increases since the beginning of 2016. In June, the pump price of petrol rose by 52 cents per litre for all the grades and diesel increased by 76 cents per litre.

The South African Automobile Association (AA) has cautioned that the current market instability will be have a great effect on fuel prices.

“We expect further volatility in the short to medium term as world markets continue to digest the consequences of the UK's referendum to leave Europe. This means that any additional political or economic shocks are likely to have a strong impact on South African fuel users,” it said.

Anita Fatunji