Petrol and diesel prices will rise sharply from midnight on Tuesday, with motorists facing steep increases driven by soaring global oil prices and a weaker rand.
Escalating conflict in the Middle East and pressure on key shipping routes such as the Strait of Hormuz have pushed crude oil prices higher in recent weeks, with Brent crude trading at about $107 (R1,831) a barrel at the time of writing. South Africa’s reliance on imported fuel leaves it particularly exposed to the global shocks.
At the same time, a softer rand — hovering around R17.14 to the dollar — is adding further pressure by increasing the cost of fuel imports.
In a partial offset, finance minister Enoch Godongwana on Tuesday announced a temporary reduction in the general fuel levy of R3/l effective from April 1 to May 5.
Taking this into account, the department of mineral resources & energy confirmed 93-octane and 95-octane petrol will increase by R3.06/l. Diesel will climb more sharply, with the wholesale price of 50ppm diesel rising by R7.51/l and 500ppm diesel by R7.37/l.
This will push the inland price of 93-octane petrol to R23.25/l and 95-octane to R23.36/l (R22.53/l at the coast). The wholesale price of 50ppm diesel will reach R26.11/l inland (R25.35/l at the coast), while 500ppm diesel will rise to R25.90/l (R25.07/l coastal).
Higher fuel prices are expected to have a knock-on effect across the economy. Diesel remains critical to the freight and agricultural sectors, while petrol and diesel are widely used in public transport and logistics.
Increases at the pumps typically translate into higher transport costs and rising food prices as the cost of moving goods from producers to retailers climbs.
TimesLIVE
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