South African motorists are in for a fuel price hike this November, as the Department of Mineral Resources and Energy (DMRE) confirmed new price increases for petrol, diesel, illuminating paraffin, and LP gas, effective Wednesday, 6 November.
This latest adjustment will impact all fuel users countrywide leaving many feeling the squeeze.
Breakdown of Price Increases
Starting Wednesday, here’s what to expect at the pumps and beyond:
Petrol (93 & 95, ULP & LRP): Increase of 25 cents per litre
Diesel (0.05% Sulphur): Increase of 21 cents per litre
Diesel (0.005% Sulphur): Increase of 20 cents per litre
Illuminating Paraffin (Wholesale): Increase of 21 cents per litre
Illuminating Paraffin (Retail): Increase of 28 cents per litre
LPGAS: Increase of 36 cents per kilogram
Behind the Hike
Despite a stronger rand trading at R17.53 against the dollar in the last month, the gains weren’t enough to offset a spike in global oil prices.
From September to October, the average exchange rate improved slightly from R17.68 to R17.53, which softened the hike by about 8 cents per litre. However, the overall Basic Fuel Price (BFP) was pushed higher due to an increase in international fuel prices.
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October’s drop in fuel prices to their lowest since early 2022 gave temporary relief, but continued unrest in the Middle East, particularly tensions between Iran and Israel, sent Brent Crude prices climbing from $72.82 to $75.07 a barrel.
The ongoing conflict could potentially affect regional oil producers, adding to investor concerns over possible supply disruptions.
Other Details
The DMRE confirmed that the Slate Levy on petrol and diesel will remain unchanged at 0.00 cents per litre. This levy, reviewed periodically, is designed to address under-recoveries in fuel pricing but will not change this time.
For those dependent on illuminating paraffin, the Single Maximum National Retail Price will rise to R16.36 per litre, up from R16.08. LPGAS will also see an increase of 36 cents per kilogram, affecting both residential and commercial users reliant on this fuel.
Looking Ahead
With these adjustments, motorists and businesses alike will need to brace for higher fuel costs. Fuel-saving habits might be more critical than ever, as international market pressures show little sign of easing up.
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