Motorists are facing another big jump in fuel prices, mostly because of rising global oil prices, problems with the supply chain, and higher costs for goods sold abroad.
The Department of Mineral and Petroleum Resources said that the price of fuel will go up by R3.27 per litre, the price of diesel will rise by R6.19 per litre, and the price of illuminating paraffin will increase by R4.22 per litre.
The government said last week that the R3 per litre fuel levy cut will last until June 2. Diesel users will get even more help, with a temporary drop of R3.93 per litre.
The main reason for the increases is that the price of crude oil around the world keeps going up.
The department said that the average price of Brent crude rose from $93.67 (R1 567) to $101 per barrel during the review period.
This increase was mostly because of rising tensions between the United States and Iran.
Closure of the Strait of Hormuz
The closing of the Strait of Hormuz, the global oil passage in the Middle East, and damage to important infrastructure that disrupts global supply have made things worse.
“The average international product prices followed the increasing trend of crude oil prices,” the department said.
“The prices of middle distillates 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.
According to the department, while the rand remained relatively stable against the US dollar, contributing minimally to the increase, other domestic pricing mechanisms added pressure.
- Fuel prices are set to increase significantly due to rising global oil prices, supply chain issues, and higher costs for imported goods.
- Petrol will rise by R3.27 per litre, diesel by R6.19 per litre, and illuminating paraffin by R4.22 per litre.
- The government has maintained a temporary fuel levy cut of R3 per litre until June 2, with a larger R3.93 per litre reduction for diesel users.
- The crude oil price increase, from $93.67 to $101 per barrel, is driven mainly by US-Iran tensions and the closure of the Strait of Hormuz affecting global oil supply.
- Middle distillates like diesel saw larger price hikes due to higher demand and reduced supply, while propane and butane prices also rose due to constrained global supply.
Motorists are facing another big jump in fuel prices, mostly because of rising global oil prices, problems with the supply chain, and higher costs for goods sold abroad.
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