Fuel prices in South Africa have increased due to the poor Rand/Dollar exchange rate and the higher price of crude oil based on an agreement by OPEC members to slash production by as much as 1.2 million barrels per day, according to cars.co.za, a South African car advertising website
A contributing factor is that Russia and non-OPEC producers have also cut crude oil production by 600,000 barrels per day. The cumulative result has put crude oil prices on an upward trajectory and is therefore impacting negatively on local fuel price forecasts, according to the website.
According to the Automobile Association (AA) in South Africa, “It is too early to know at what price level oil supply will match demand in the wake of the OPEC decision to cut production".
The AA also predicts a tough year ahead for motorists with a number of fuel price increases expected during the year.
The AA of South Africa released the following updates for the increased retail cost of and diesel:
- The price of petrol 93 ULP/LRP increased by 50 cents per litre while petrol 95 ULP/LRP increased by 48 cents per litre.
- The price of diesel 0.05% Sulphur increased by 39 cents per litre while diesel 0.005% increased by 37 cents per litre.