The retail price of all grades of petrol will rise by 16 cents a litre next week, the minerals and energy department said on Friday in a statement.

In Gauteng, 95 grade petrol will rise to R7.51 a litre.

There would, however, be a decrease in zone differentials (transport cost) in C-Zones, the department said.

"The National Energy Regulator of SA on 30 April 2009 announced an average tariff reduction of 10.38 percent in the transport cost of petroleum transported by pipeline from Durban to the C-Zones.

"These decreases will range from 0.5 cents per litre (for example Pietermaritzburg) to 1.4 cents per litre (for example Gauteng)."

The country's petrol prices are determined partly by zone differentials that are based on the cost of transporting fuel to various parts of South Africa.

When the pipeline tariff decreases, so does the price paid to all fuel producers.

The wholesale price of diesel with a 0.05 percent sulphur content will decrease by 12.9 cents a litre next week.

Diesel with a 0.005 percent sulphur content will decrease by 13.9 cents a litre.

The wholesale price of illuminating paraffin will decrease by nine cents a litre and the single maximum national retail price for illuminating paraffin will come down by 12 cents a litre.

The statement noted that the minister of minerals and energy had announced an increase of 1.5 cents per litre to 3.0 cents per litre in the Incremental Inland Transport Recovery levy with effect from 3 June 2009.

During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased, the department said.

However the average rand/dollar exchange rate strengthened when compared to the previous period.

"The average rand/dollar exchange rate for the period 30 April 2009 to 29 May 2009 was 8.4371 compared to 9.1531 during the previous period," the statement said.

Sapa