Fuel prices to increase

The increase was announced by Mineral Resources and Energy, Minister Gwede Mantashe, on Monday evening.

South African purse strings will be pulled tighter from Wednesday as prices on all grades and categories of petrol, illuminated paraffin and retail gas are expected to increase.

The increase was announced by Mineral Resources and Energy, Minister Gwede Mantashe, on Monday evening.

The expected price increases are:

Petrol (both 93 ULP and LRP) is expected to rise by some 28c per litre.

Petrol (both 95 ULP and LRP) will cost at least 36c more by the litre.

0.05% sulphur diesel will rise by R1.52.

Diesel 0.005% sulphur will cost more after an increase of about R1.68.

Those purchasing illuminating paraffin at wholesale price are expected to pay R2.66 more per litre.

The retail price for illuminating paraffin is expected to increase by at least R3.55 per litre.

Maximum retail price for gas is also on the up – costing at least R2.50 more per litre.

Minister Mantashe highlighted that several international factors continue to put pressure on the price of Brent Crude oil which has steadily increased to more than USD $100 over the past few weeks.

“The average Brent Crude oil price increased [and] the main contributing factors are [the] continued sanctions imposed on Russia. This is disrupting energy flows as Russia is one of the biggest global exporters of oil.

“OPEC and Non-OPEC members limiting fuel supply even though demand has been increasing globally due to relaxed COVID-19 restrictions [and] the Yemen rebels attacked storage facilities in Saudi Arabia, resulting in supply disruptions,” he said.

Other factors leading to the increase include the strengthening of the Rand against the Dollar on average, movements in the price of refined petroleum products and a global shortage of diesel.

(With Inputs from South African Government Press Release)