South Africa Fuel Prices Jump Amid Global Oil Surge
South Africa is preparing for a significant fuel price hike starting this Wednesday. The Department of Mineral and Petroleum Resources (DMPR) has announced increases across all fuel types due to rising global oil prices and supply constraints. Petrol 93 (ULP & LRP) will see a R3.12 per litre increase, while Petrol 95 (ULP & LRP) will rise by R3.33 per litre. Diesel prices will also climb, with a R2.84 increase for 0.05% sulphur diesel and a R3.24 hike for 0.005% sulphur diesel.
The DMPR attributes the price adjustments to a surge in the average Brent Crude oil price, which jumped from USD 87.89 to USD 101. Factors contributing to this rise include ongoing US/Iran tensions, uncertainties around oil flow through the Strait of Hormuz, higher shipping costs, and dwindling global inventories. The department noted that international product prices for petrol, diesel, and illuminating paraffin have also increased due to supply shortages.
These global pressures have led to higher contributions to the Basic Fuel Prices (BFP) for petrol, diesel, and illuminating paraffin by 329.07 cents per litre, 280.17 cents per litre, and 357.23 cents per litre, respectively. Additionally, the prices of propane and butane have risen due to supply uncertainties. However, the strengthening of the Rand against the USD has slightly mitigated these increases, reducing the BFP contributions by small margins.
Illuminating paraffin and LPGas prices are also affected, with wholesale illuminating paraffin rising by R3.58 per litre and its retail price increasing by R4.77. The Maximum Retail Price of LPGas will see a 42-cent increase nationwide, with an additional 48-cent hike in the Western Cape.