Fuel prices could hit R27, here are the biggest pushing factors

In a move set to negatively impact consumers across South Africa, petrol and diesel prices are confirmed to surge on Wednesday, further burdening motorists grappling with already soaring fuel costs.

The hike will see both grades of unleaded petrol, 93 and 95, climbing by R1.21 a litre.

Consequently, the price of 95 unleaded petrol in Gauteng will ascend to R24.45 per litre, while the coastal price will peak at R23.73.

Diesel prices are also set to soar, with 0.05% sulphur diesel increasing by R1.05 a litre, while 0.005% sulphur diesel will spike by R1.18 a litre.

This adjustment propels the Gauteng wholesale price to R22.41, while the coastal price edges up to R21.69.

Furthermore, the wholesale price of illuminating paraffin will witness an increase of 64c a litre, while the maximum retail price for LP gas is scheduled to surge by 41c per kg.

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The determinants of South African fuel prices continue to be predominantly influenced by international oil costs and the fluctuating rand exchange rate, given that oil is priced in dollars.

Over the past month, the average Brent Crude oil price surged from $82.03 a barrel to $82.50.

This escalation, as stated by the Department of Mineral Resources and Energy, was attributed to sustained production cuts by the oil cartel OPEC+, severe cold weather hampering production in North America, and ongoing tensions in the Red Sea, thereby increasing the geopolitical risk premium on shipping costs.

Simultaneously, the rand weakened from R18.77/$ to R19.20/$ during the same period, exacerbating the impact of the oil price surge on local fuel costs.

The forthcoming price hikes are expected to exacerbate the financial strain on consumers and businesses already grappling with economic challenges.

As South Africans brace themselves for the impending increases, discussions on mitigating the impact and ensuring energy affordability are likely to intensify on both governmental and societal levels.