The Department of Energy over the weekend announced the official petrol price adjustments for October 2019. It’s not good news for motorists, who have been slapped with petrol price increases for eight consecutive months this year.
According to the Department of Energy, the price of 95 octane petrol will increase by 18 cents per litre from Wednesday, which the price of 95 octane to R16.21 c/l inland.
October 2019 petrol price
- Petrol 93 will decrease by 4 cents per litre
- Petrol 95 will increase by 18 cents per litre
- Diesel will increase by 25 cents per litre (both grades)
- Illuminating paraffin will increase by 25 cents a litre.
The increase was predicted by the Automobile Association on the back of oil strikes in Saudi Arabia.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, like shipping costs.
In its statement, the department of Energy explained the main reason for the fuel price increases was higher oil prices during the period under review when compared to the previous one.
It said that the average Brent Crude oil price increased from $58.86 US per barrel to $62.96 per barrel during the period under review.
The department also cited the attacks on Saudi Arabia; “The oil prices rose sharply after drones attacked two major oil facilities in Saudi Arabia namely, Abqaiq facility, which is the largest crude oil stabilisation plant in the world, and the Khurais oil field, which is the second-largest oil field in Saudi Arabia, operated by Saudi Aramco on 14 September 2019.
“The closure of these operations had an impact on nearly five million barrels of crude processing per day, affecting 5% of the world’s daily oil production.”
It also said that the rand appreciated on average against the US Dollar from R15.17 to R14.90 per dollar during the period under review when compared to the previous one.
The fuel prices schedule for the different zones will be published on Tuesday, 1 October 2019.