S. Africa to Raise Petrol Price By 6 Percent

S. Africa to raise petrol price by 6 percent

JOHANNESBURG, July 1 (Xinhua) — South Africa announced on Friday that it will raise petrol price by 6 percent, setting a new record of 5.35 rand (79 US cents) per liter next Wednesday.

The Department of Minerals and Energy said that a liter of 93 octane petrol will go up by 29 cents (4 US cents) next Wednesday to cost 5.35 rand in Gauteng province and 5.22 rand (77 US cents) on the coast.

Standard diesel goes up by 49 cents (7 US cents) a liter to cost 5.16 rand (76 US cents) in Gauteng and 5.03 rand (75 US cents) on the coast.

The government said that during the period under review — May 27 to June 30 — the average international product prices of petrol, diesel and illuminating paraffin increased and the rand/US dollar exchange rate weakened to an average of 6.76 rand to the US dollar.

News wires have reported that oil hit 60 US dollars a barrel this week.

A group of farmers has called for an investigation of the fuel price, questioning why it was cheaper in neighboring countries.

Economists have also noted that the fuel price may contribute to further increases in inflation.