Fuel prices surge as petrol rises by more than R3 a litre
Fuel prices surge as petrol rises by more than R3 a llitre. South African motorists and households are set to face sharp increases in fuel prices from Wednesday, 11 October, following an announcement by the Department of Mineral and Petroleum Resources (DMPR).
The adjustment will affect all fuel types, with petrol 95 increasing by R3.33 per litre and petrol 93 rising by R3.12. Diesel prices will also climb, with 0.05% sulphur diesel increasing by R2.84 and 0.005% sulphur diesel by R3.24.
Illuminating paraffin will see a wholesale price increase of R3.58, while the Single Maximum National Retail Price will rise by R4.77. The maximum retail price of LPGas will increase by 42 cents, while the increase in the Western Cape will be 48 cents.
The department attributed the increases to higher international oil and petroleum product prices during the period under review.
According to the DMPR, the average Brent crude oil price increased from $87.89 to $101. It said the increase was linked to continued US/Iran tensions, uncertainty around oil flows through the Strait of Hormuz, higher shipping costs and declining inventories.
International prices for petrol, diesel and illuminating paraffin also increased because of supply shortages resulting from lower global inventories.
These developments increased the contributions to the Basic Fuel Prices (BFP) of petrol, diesel and illuminating paraffin by 329.07 cents per litre, 280.17 cents per litre and 357.23 cents per litre respectively.
The department also reported increases in the prices of propane and butane, citing supply uncertainties during the period.
The rand’s performance against the US dollar provided limited relief. The currency strengthened against the dollar, lowering the BFP contributions for petrol by 0.17 cents per litre, diesel by 0.22 cents and illuminating paraffin by 0.21 cents.
Despite the currency benefit, the department said the international price increases resulted in the new fuel price adjustments.
