Fri. Jul 3rd, 2020

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Fuel Price Set To Increase From Midnight

Fuel Price Set To Increase From Midnight

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If you haven’t filled up your car yet – you may want to do so before midnight on Tuesday.

The Department of Energy on Monday said the retail price of all grades of petrol would increase by R1.18 cents per litre. Diesel would rise by 22 cents.

The department said high oil prices due to a decrease in production and increased demand in the United States led to the hikes.

There have been significant fuel price reductions over the past few months due to a plummet in oil prices.

This was due to less demand during the COVID-19 pandemic and a price war involving Saudi Arabia and Russia also saw a collapse in Brent crude prices.

Ironically, as South Africans were forced to stay home, it became cheaper to drive to work.

The opposite appears to be happening now as South Africans return to work, prices are on the increase.

But the Department of Energy said fuel prices were still cheaper than several weeks ago.

This could not remain for long as oil-producing nations have agreed to reduce production by about 10 million barrels per day, and many nations were easing their lockdowns, which was seeing more vehicles on the road.

EWN

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