South African motorists will pay more for petrol from Wednesday as the Department of Petroleum and Mineral Resources has announced a significant increase in fuel prices, citing developments in global oil markets.
Under the latest adjustment, both grades of petrol will increase by R1.43 (approximately $0.09) per litre. However, consumers using diesel, illuminating paraffin and liquefied petroleum gas (LPG) will benefit from price reductions.
According to the department of Petroleum and Mineral Resources, the price of diesel will decrease by R3.24 per litre for the 0.05 per cent sulphur grade and by R2.61 per litre for the 0.005 per cent sulphur grade.
Wholesale illuminating paraffin will also become cheaper, with a reduction of R5.96 per litre, while the maximum retail price is expected to decline by R7.95 per litre. The cost of LPG will fall by R0.17 per kilogramme nationwide and by R0.20 per kilogramme in the Western Cape.
According to government officials, the mixed fuel price adjustments were largely influenced by movements in international oil prices. Brent crude oil prices rose from $101 to $104.59 per barrel during the review period, driven by heightened geopolitical tensions between the United States and Iran, as well as disruptions linked to the closure of the Strait of Hormuz, a critical global oil shipping route.
Despite the rise in crude oil prices, middle-distillate products such as diesel recorded lower international prices due to easing seasonal demand in the Northern Hemisphere. Freight rates for propane and butane also declined, contributing to lower LPG costs.
The department further noted that the South African rand strengthened marginally against the United States dollar during the review period, moving from R16.65 to R16.52 per dollar. The stronger local currency helped offset some of the impact of higher oil prices by reducing the contribution to basic fuel costs by between R0.12 and R0.15 per litre across petrol, diesel and paraffin products.
In a move aimed at cushioning consumers from rising fuel costs, the government also announced reductions in fuel levies. Effective Wednesday, the general fuel levy will be cut by R1.50 per litre for petrol and R1.96 per litre for diesel.
