Johannesburg: The Department of Petroleum and Mineral Resources (DMPR) has announced a significant increase in the prices of petrol and diesel, effective from Wednesday. This adjustment will see petrol and diesel prices rise by between R3.27 and R6.19.

According to South African Government News Agency, the increase is part of government measures aimed at mitigating the impact on consumers, with a continued R3 decrease in the general fuel levy for petrol and a R3.93 reduction for diesel. The new price structure for the month includes a R3.27 per litre increase for Petrol 93 and 95 (ULP and LRP), a R6.19 per litre increase for Diesel (0.05% and 0.005% sulphur), a R4.22 per litre increase for Illuminating Paraffin (wholesale), and a R5.63 per litre increase for the Single Maximum National Retail Price for Illuminating Paraffin. Additionally, the Maximum Retail Price of LPGas will rise by R5.07 per kg in Gauteng and R5.78 per kg in the Western Cape.

The price adjustments coincide with an average Brent Crude oil price increase from 93.67 USD to 101 USD, driven by geopolitical tensions, including the US-Iran conflict and the closure of the Strait of Hormuz. These disruptions have impacted the supply chain, contributing to the rising prices. Middle distillates, such as diesel and paraffin, have seen sharper price hikes due to heightened demand and reduced supply from the Persian Gulf, resulting in increased contributions to the Basic Fuel Prices by R2.04 per litre for petrol, R4.96 per litre for diesel, and R4.21 per litre for illuminating paraffin.

The department also noted an increase in the prices of Propane and Butane, attributed to limited global supply following the Strait of Hormuz closure. Despite these global market fluctuations, the Rand maintained its stability against the US Dollar, contributing less than one cent per litre to the Basic Fuel Prices of petrol, diesel, and Illuminating Paraffin.