Cape town: The Department of Petroleum and Mineral Resources (DMPR) has announced that petrol and diesel prices will increase by between R3.06 and R7.51 from midnight. This decision comes as part of government efforts to alleviate the impact on consumers through a temporary R3 decrease in the general fuel levy.
According to South African Government News Agency, the price hike was anticipated due to the ongoing conflict in the Middle East, which has led to significant global increases in the price of Brent Crude Oil. The adjusted prices for April reveal a R3.06 per litre increase for both Petrol 93 (ULP and LRP) and Petrol 95 (ULP and LRP). Diesel prices will see a more substantial rise, with a R7.37 per litre increase for Diesel (0.05% sulphur) and a R7.51 per litre increase for Diesel (0.005% sulphur).
The DMPR also reported a notable increase in the price of Illuminating Paraffin, with a wholesale jump of R11.67 per litre and a Single Maximum National Retail Price increase of R15.60 per litre. Additionally, the Maximum Retail Price of LPGas will go up by R1.08 per kg, with a slightly higher increase of R1.23 per kg in the Western Cape.
The department attributed the price hikes to an increase in the average Brent Crude oil price, which rose from US$69.08 to US$93.67 during the review period. Tensions between the US and Iran have impacted crude oil supply, particularly through the Strait of Hormuz, leading to higher Basic Fuel Prices for petrol, diesel, and illuminating paraffin.
While the prices of Propane and Butane remained stable due to decreased demand in the Northern Hemisphere’s warmer weather, shipping costs rose due to the Middle East conflict. The Rand’s depreciation against the US Dollar, from R16.00 to R16.64, further contributed to the higher Basic Fuel Prices by 56.18 cents per litre for petrol, 78.07 cents per litre for diesel, and 83.21 cents per litre for Illuminating Paraffin.
The temporary reduction of the general fuel levy, set to take effect in April, will offer some relief, reducing the price at the pumps by R3.