South Africa Announces Major Fuel Price Hikes Amid Global Oil Supply Disruptions

The increase comes alongside government efforts to cushion the blow for consumers through the extension of the R3 decrease in the general fuel levy for petrol, with a R3.93 reduction for diesel.

The adjusted prices for this month are as follows:

• Petrol 93 and 95 (ULP and LRP): R3.27 per litre (p/l) increase
• Diesel (0.05% sulphur): R6.19 p/l increase
• Diesel (0.005% sulphur): R6.19 p/l increase
• Illuminating Paraffin (wholesale): R4.22 p/l increase
• Single Maximum National Retail Price for Illuminating Paraffin: R5.63 p/l increase
• Maximum Retail Price of LPGas: R5.07 per kg increase in Gauteng and R5.78 per kg increase in the Western Cape

“The average Brent Crude oil price increased from $93.67 to $101 during the period under review. This is due to the continued tension between the US and Iran, the closure of the Strait of Hormuz and damage to other crucial infrastructure, which have affected crude oil supply.

“The average international product prices followed the increasing trend of crude oil prices. The prices of middle distillates, diesel and paraffin increased more than petrol prices because of higher demand and reduced supply from the Persian Gulf. These factors led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by R2.04 per litre, R4.96 per litre and R4.21 per litre, respectively.

“The prices of Propane and Butane increased during the period under review due to limited global supply since the closure of the Strait of Hormuz,” the department said.

The rand remained constant against the US Dollar during the period under review, resulting in a “contribution of less than one cent per litre to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin”.