Amanze Chinonye
South Africa will raise petrol prices by more than 11% and diesel prices by up to 10% from Wednesday, as higher global crude oil and refined-product prices linked to the conflict between the United States and Iran drive up the cost of fuel imports, the government said on Monday.
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The Department of Mineral and Petroleum Resources said the price of 95-grade petrol would rise by 3.33 rand ($0.21) per litre, while 93-grade petrol would increase by 3.12 rand. Diesel prices will rise by 2.84 rand per litre for the 0.05% sulphur grade and by 3.24 rand for the 0.005% grade. Wholesale illuminating paraffin will increase by 3.58 rand per litre.
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The increases follow a sharp rise in international crude prices during the review period. The government said the average price of Brent crude rose to $101 a barrel from $87.89, citing continued U.S.-Iran tensions, uncertainty over oil flows through the Strait of Hormuz, higher shipping costs and declining inventories.
South Africa imports both crude oil and refined petroleum products, leaving domestic fuel prices exposed to international market movements. The government said higher international prices for petrol, diesel and illuminating paraffin, driven by supply shortages and lower global inventories, increased their contributions to the country’s Basic Fuel Prices by 329.07 cents, 280.17 cents and 357.23 cents per litre respectively.
A slight appreciation of the rand provided little relief. The currency strengthened marginally to an average of 16.212 rand per dollar from 16.213 rand during the previous review period, reducing the basic fuel price contribution by less than a cent per litre.
The government will also apply a slate levy of 87.66 cents per litre to petrol and diesel under the country’s self-adjusting mechanism. The cumulative slate balance for the two fuels stood at a negative 10.45 billion rand at the end of August, prompting the levy, which rose by 4.38 cents from 83.28 cents.
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The new prices will also reflect an adjustment in the octane differential between 95- and 93-grade petrol, which is reviewed at the beginning of each quarter. The government said the differential had changed during the previous quarter, resulting in different retail prices for the two grades across fuel-pricing zones.
The increases are likely to add to cost pressures in South Africa, where domestic fuel prices are highly sensitive to international oil prices and movements in the rand-dollar exchange rate.
The government will publish detailed fuel prices for individual magisterial district zones on Tuesday, a day before the new prices take effect.
The maximum retail price of LPG will also increase by 42 cents per kilogram nationally and by 48 cents per kilogram in the Western Cape. The maximum refinery gate price for LPG imported through the Port of Saldanha Bay will be 15,525.62 rand per metric tonne, while its maximum retail price will be 37.08 rand per kilogram from Wednesday.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
