Johannesburg: With the public gearing up for the festive season, consumers will have to dig deeper into their pockets as the price of all grades of petrol has increased by 17 cents a litre. The Department of Mineral and Petroleum Resources (DMPR) announced the price increase of 93 (ULP and LRP) and 95 (ULP and LRP) by 17 cents on Tuesday.
According to South African Government News Agency, as of Wednesday, a litre of 95 petrol now costs R21.47 in Gauteng, up from R21.30 in November. Along the coast, the price has risen to R20.68 from November’s R20.51. Diesel prices have also seen significant hikes, with Diesel (0.05% sulphur) increasing by 54.88 cents per litre and Diesel (0.005% sulphur) by 55.88 cents per litre. Additionally, the price of Illuminating Paraffin (wholesale) has risen by 48.88 cents per litre, with the Single Maximum National Retail Price for illuminating paraffin climbing by 66 cents per litre. Meanwhile, the maximum LPGas retail price has surged by R1.72.
The department attributed these ch
anges to several global factors. The average Brent Crude oil price decreased slightly from 73.28 US Dollars (USD) to 72.70 USD during the period under review. The primary contributors to the price hikes were the OPEC+ decision not to increase production in December and increased production from non-OPEC countries amid stagnant global economic growth. The department further stated that the average international product prices of petrol were impacted by lower demand, a switch to cheaper winter gasoline, and increased inventories.
Conversely, diesel and illuminating paraffin prices rose due to heightened seasonal demand with the upcoming winter in the Northern Hemisphere. LPG prices increased following a rise in the prices of propane and butane. These factors collectively led to increased contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 19.69 c/l, 23.83 c/l, and 16.86 c/l, respectively.
The Rand’s depreciation against the US Dollar, from 17.53 to 17.93 Rand per USD, also p
layed a role, leading to higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 22.35 cents a litre, 23.74 cents a litre, and 23.62 cents a litre, respectively.