Cape town: The Department of Petroleum and Mineral Resources (DMPR) has announced a significant adjustment in fuel prices, effective this Wednesday. Petrol prices will see an increase, while diesel, paraffin, and LP gas prices are set to decrease.
According to South African Government News Agency, the adjustments come as petrol prices for both 93 and 95 grades (ULP and LRP) will rise by R1.43. In contrast, diesel prices will see a reduction, with a R3.24 decrease for diesel with 0.05% sulphur and a R2.61 decrease for diesel with 0.005% sulphur. Illuminating paraffin will experience a substantial wholesale price drop of R5.96, while its single maximum national retail price will decrease by R7.95. The maximum retail price of LP gas is set to decrease by 17 cents per kilogram, with an additional 20 cents per kilogram decrease in the Western Cape.
The DMPR attributes the petrol price increase to a rise in the average Brent Crude oil price, which climbed from 101 to 104.59 US dollars. This increase is partly due to ongoing tensions between the US and Iran and the closure of the Strait of Hormuz. Meanwhile, the price reduction in middle distillates such as diesel and paraffin is linked to lower seasonal demand as the northern hemisphere transitions into summer. Although the prices of Propane and Butane remained stable, decreased freight costs were observed during the period under review.
Additionally, the Rand's strength against the US dollar, improving from R16.65 to R16.52 per USD, contributed to slightly lower Basic Fuel Prices for petrol, diesel, and illuminating paraffin, with reductions of 12.07 c/l, 14.81 c/l, and 14.55 c/l, respectively. Furthermore, a reduction in the general fuel levy by R1.50 per litre for petrol and R1.96 per litre for diesel will also take effect from Wednesday.