Zuko Komisa
- Petrol prices will rise by R3.27 per litre, while diesel users face a steeper R6.19 hike starting this Wednesday.
- Supply disruptions in the Persian Gulf and the closure of the Strait of Hormuz have driven Brent Crude prices up to $101 per barrel.
- A temporary extension of the fuel levy reduction has mitigated the blow, preventing even more catastrophic price jumps.
The Department of Petroleum and Mineral Resources has confirmed a significant surge in fuel costs, with petrol prices climbing by R3.27 per litre.
Diesel and illuminating paraffin have been hit even harder, seeing wholesale increases of R6.19 and R4.22 respectively.
These adjustments come despite the government’s decision to extend a fuel levy relief package, which provides a R3.00 reduction for petrol and R3.93 for diesel to shield consumers from the full impact.
The price hike is primarily driven by escalating geopolitical tensions between the US and Iran. The closure of the Strait of Hormu a vital artery through which 20% of the world’s oil trade passes and damage to critical energy infrastructure have constrained global supply.
This “greatest global energy security challenge in history” has pushed the average price of Brent Crude oil above the $100 per barrel mark.
Middle distillates, such as diesel, have experienced the most volatility due to high demand coupled with dwindling supply from the Persian Gulf.
Domestic factors played a secondary role in this month’s adjustment. While the Rand remained relatively steady against the US Dollar, a “slate levy” adjustment of approximately R1.23 per litre was added to recover industry under-recoveries.
Additionally, the cost of LPGas is set to rise sharply, with consumers in Gauteng and the Western Cape facing increases of over R5 per kilogram. The department noted that while the exchange rate was stable, the sheer weight of international product price increases made these substantial hikes unavoidable.
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The post Ziyakhala: Petrol prices rise by R3.27, diesel users face a R6.19 hike from Wednesday appeared first on KAYA 959.
