South Africa's petrol price hits record high amid US-Iran tensions

South African motorists will face another sharp increase in fuel prices starting Wednesday, with 95-grade petrol breaching the R30 mark for the first time. The hike, announced by the department of mineral & petroleum resources, will see 95-grade petrol rise by R3.33 per litre, pushing prices to R30.25 in Gauteng and R29.38 in coastal areas. Meanwhile, 93-grade petrol will increase by R3.12 per litre.

Diesel prices, which are not regulated at the retail level, will also climb significantly. The 0.05% sulphur grade diesel will jump by R2.84 per litre, while the 0.005% sulphur grade will rise by R3.24 per litre. In Gauteng, diesel will cost R31.95, and R31.08 at the coast.

The increases are driven by ongoing tensions between the US and Iran, which have disrupted oil supply through the Strait of Hormuz. South Africa, as a net importer of crude oil, has been hit hard by these global disruptions. The average Brent Crude oil price surged from $87.89 to $101 during the review period, according to the department of mineral & petroleum resources.

Other fuel products will also see price hikes. Illuminating paraffin, used by many low-income households, will rise by R3.58 per litre, while the maximum retail price of LP gas will increase by R0.48 per kilogramme in the Western Cape and R0.42 elsewhere in the country.