JOHANNESBURG: Holiday travelers will face increased fuel costs as they return from festivities, following an announcement that the prices of all grades of petrol and diesel are set to rise starting New Year’s Day. The Department of Mineral and Petroleum Resources (DMPR) has confirmed these adjustments, which also include changes in the costs of LP Gas and paraffin.
According to South African Government News Agency, the price hikes will see petrol 93 increase by 19 cents and petrol 95 by 12 cents per litre. Diesel prices will also rise, with a 7 cent increase for 0.05% sulphur diesel and a 10 cent increase for 0.005% sulphur diesel. Conversely, illuminating paraffin will see a decrease of 9 cents wholesale and 13 cents in the retail price. Meanwhile, the maximum retail price for LPGas will increase by 13 cents.
The adjustments mean that in Gauteng, a litre of 95 ULP petrol will now cost R21.59, up from the December price of R21.47. At coastal locations, the price for the same grade will rise from R20.68 to R
20.80.
The department attributes the changes to several international and domestic factors. The average Brent Crude oil price saw a modest increase from US$72.70 to US$72.78, influenced by OPEC+’s decision to maintain production levels and the oversupply by non-OPEC producers amid sluggish global economic growth. While international petrol prices followed crude oil’s upward trend, middle distillate prices decreased slightly due to higher winter inventories in the Northern Hemisphere.
Additionally, the Rand’s depreciation against the US Dollar, from an average of 17.93 to 18.11 Rand per USD, contributed to increased basic fuel prices for petrol, diesel, and illuminating paraffin by 10.58 c/l, 11.11 c/l, and 10.90 c/l, respectively.