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![A weakened rand coupled with global oil production output has meant that South Africans will see higher prices at the pump this year [Xinhua]](http://thebricspost.com/wp-content/uploads/2017/01/218707827_8-e1483367775390.jpg)
A weakened rand coupled with global oil production output has meant that South Africans will see higher prices at the pump this year [Xinhua]
Starting January 4, the price of petrol in the country will be approximately 50 cents higher per liter.
Diesel prices will also increase by 3.5 per cent, adding 39 cents to the price per liter.
This move comes shortly after Nigeria’s National Petroleum Corporation (NNPC) said it would do the same.
The department attributed the exchange rate between South Africa’s Rand to the US dollar for the increase.
“The Rand strengthened very slightly against the US Dollar from R13.91 to R13.87, on average, during the period under review when compared to the previous one,” the statement read.
However, local news site The South African cited the Automobile Association as saying that the rand had weakened against the dollar since mid-December, while international oil prices continued to crawl upward.
“It is too early to know what price level oil supply will match demand in the wake of the Organization of the Petroleum Exporting Countries (OPEC) decision to cut production,” the AA said to The South African.
In November, OPEC and a number of non-member states agreed to major production cuts in order to stabilize the global oil market and boost prices.
The BRICS Post with inputs from Agencies
