Pretoria:The Department of Mineral and Petroleum Resources has announced that fuel prices will increase for all types starting Wednesday.
According to South African Government News Agency, the adjustments will see a rise of R3.12 for Petrol 93, R3.33 for Petrol 95, R2.84 for Diesel (0.05% sulphur), and R3.24 for Diesel (0.005% sulphur). The wholesale price of Illuminating Paraffin will go up by R3.58, while the Single Maximum National Retail Price for Illuminating Paraffin will increase by R4.77. Additionally, the Maximum Retail Price of LPGas will rise by 42 cents, with a 48 cents increase specifically in the Western Cape.
These changes are attributed to a rise in the average Brent Crude oil price from 87.89 to 101 US Dollars. Factors contributing to this include ongoing US/Iran tensions, uncertainties regarding oil flow through the Strait of Hormuz, higher shipping costs, and decreasing inventories.
The department noted that the average international prices of petrol, diesel, and illuminating paraffin have risen due to supply shortages from lower global inventories. This situation has led to increased contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 329.07 cents, 280.17 cents, and 357.23 cents per litre, respectively. An increase in Propane and Butane prices was also observed due to supply uncertainties.
On a positive note, the Rand's strengthening against the US Dollar has resulted in lower contributions to the Basic Fuel Prices by 0.17 cents for petrol, 0.22 cents for diesel, and 0.21 cents for Illuminating Paraffin.
