In a blow to consumers already grappling with the strain of the rising costs of living, the retail price of fuel is scheduled to surge yet again come Tuesday midnight.
According to the latest announcement by the Department of Mineral Resources and Energy, all grades of petrol will witness a substantial increase of R1.21 per litre, further squeezing consumers who are already feeling the pinch.
Additionally, diesel prices are set to skyrocket by amounts ranging from R1.18 to R1.50 per litre.
February price increases
Paraffin users will also feel the pinch, facing an additional cost of 64 cents per litre, while the maximum retail price of LP gas is slated to increase by 41c/kg.
This announcement follows on the heels of February’s fuel price increases, which saw a spike of 75c per litre for petrol and between 70c and 73c per litre for diesel.
Mineral Resources and Energy Minister Gwede Mantashe, in a statement issued on Monday, cited current local and international factors as the basis for the impending adjustment in fuel prices, effective on Wednesday.
The fuel prices undergo monthly adjustments, with considerations including the country’s crude oil and finished product imports, international price levels, and importation costs, including shipping expenses.
The department attributes the latest price hikes primarily to higher international oil prices and a weaker rand/dollar exchange rate.
Higher crude oil prices
“The average international product prices of petrol, diesel, and illuminating paraffin increased in line with the higher crude oil prices.
“LPG prices increased due to higher freight costs and a weaker rand. These factors led to higher contributions to the basic fuel prices of petrol, diesel, and illuminating paraffin by R102.82c/l, R102.76c/l, and R47.42c/l, respectively.
“The rand depreciated slightly on average against the US dollar [from R18.77 to R19.20 per dollar] during the period under review when compared to the previous one,” said the department.
“This led to higher contributions to the basic fuel prices of petrol, diesel, and illuminating paraffin by R17.71c/l, R18.74c/l, and R18.53c/l, respectively.”
