Price of petrol and diesel to increase from Wednesday

The Department of Petroleum and Mineral Resources has announced significant increases in fuel prices, with petrol and diesel set to rise by between R3.27 and R6.19 from Wednesday.

The hikes come amid efforts by government to cushion consumers through the extension of a R3 reduction in the general fuel levy for petrol and a R3.93 reduction for diesel.

According to the department, petrol 93 and 95 (ULP and LRP) will increase by R3.27 per litre, while both grades of diesel (0.05% and 0.005% sulphur) will rise by R6.19 per litre. The wholesale price of illuminating paraffin will increase by R4.22 per litre, with the single maximum national retail price rising by R5.63 per litre.

Meanwhile, the maximum retail price of LPGas will go up by R5.07 per kilogram in Gauteng and R5.78 per kilogram in the Western Cape.

The department attributed the sharp increases to rising global oil prices, noting that the average Brent crude oil price climbed from $93.67 to $101 during the review period. This was largely driven by geopolitical tensions involving the United States and Iran, as well as the closure of the Strait of Hormuz and damage to critical infrastructure, all of which disrupted crude oil supply.

Higher international product prices also played a role, particularly for diesel and paraffin, which saw stronger increases due to heightened demand and reduced supply from the Persian Gulf region. These factors pushed up contributions to the Basic Fuel Price by R2.04 per litre for petrol, R4.96 for diesel, and R4.21 for illuminating paraffin.

In addition, the prices of propane and butane rose due to constrained global supply following the closure of the Strait of Hormuz.

The department noted that the rand remained relatively stable against the US dollar during the period under review, contributing less than one cent per litre to the overall fuel price adjustments.