The petrol price is up by 44 cents as of midnight last night.
As motorists face increased tariffs, international petroleum prices and the weakening Rand/ US dollar exchange are responsible for prices that are on the rise again.
When diesel and paraffin prices increased by 24 cents in September, the October petrol hike was expected to be about 51 cents, making the current 44 cent increase a slightly smaller bullet to bite.
The petrol price plummeted by 99 cents in August and fell a further 18 cents in September. The massive petrol plummet in August correlated quite closely with the exchange rate as the Rand strength climbed at the same time as the petrol price fell. The petrol price drop in September, though a comparably minimal decrease, did not seem to correlate with the Brent Crude oil price or US dollar strength, both of which increased from August to September. The exchange rate, which was up and down in minimal degrees might have played a part in the turbulence of the petrol price.
Today’s increase, however showcases a direct correlation between the petrol hike and the Brent Crude oil price which has shot up to $51,64 a barrel, although the exchange rate has improved somewhat with just R13,76 equaling $1.