Petrol rises 20c while diesel jumps 65c.

The department of mineral and petroleum resources (DMPR) has announced that the prices of all fuel types will increase on Wednesday, with hikes ranging between 20c and 65c per litre. The department said the adjustments are driven by a combination of international oil price fluctuations and geopolitical factors, despite a stronger local currency.

From Wednesday, both 93 and 95 octane petrol will increase by 20c per litre. Diesel users will face steeper hikes, with 0.05% sulphur diesel rising by 62c and 0.005% sulphur diesel by 65c. The wholesale price of illuminating paraffin will increase by 44c, while the single maximum national retail price for the same product goes up by 58c. Additionally, the maximum retail price of LP Gas will rise by 23c per kilogram nationally, with a 26c increase specifically for the Western Cape.

The DMPR said the average price of Brent Crude oil rose from US$64.08 to US$69.08 during the period under review. Key drivers for this surge include higher shipping rates and heightened geopolitical uncertainty. Specifically, tensions between the US and Iran have raised concerns regarding potential supply disruptions in the Strait of Hormuz. International product prices followed this upward trend, contributing significantly to the basic fuel prices of petrol, diesel, and paraffin.

The department also said that the prices of propane and butane increased due to tighter global supply and cold weather in the Northern Hemisphere.

A partial cushion for South African consumers came from the exchange rate, as the Rand strengthened against the US Dollar during the review period, moving from R16.31 to R16.00 per US$. The DMPR said this appreciation contributed over 16 cents per litre toward lowering the potential basic fuel price increase across all categories. Without the stronger Rand, the announced hikes would have been more severe.

-SAnews.gov.za