APA-Johannesburg (South Africa) South Africa’s Ministry of Mineral Resources and Energy has approved an increase in fuel prices that will see both grades of petrol costing R1.71 (about US$0.09) more per litre with effect from Wednesday while diesel users will have to fork out up to an R2.84 extra compared to August.
In a statement late Monday, the Ministry of Mineral Resources and Energy said both 93 and 95 unleaded petrol would have their prices hiked by R1.71 a litre starting September 6.
This would see a litre of 95 unleaded petrol now costing R24.54 in Gauteng province, the highest level since August 2022.
The price of 0.05 percent sulphur diesel has been hiked by a record R2.84 a litre, a development that would see motorists in Gauteng now paying R23.05 for a litre. This would be a new high since the record high of R25.40 recorded in July 2022.
Illuminating paraffin prices will be hiked by R2.78 a litre, the ministry said.
It attributed the hikes to many factors, including the increase in the price of Brent crude oil.
“The average Brent Crude oil price increased from 79.75 US Dollars (USD) to 84.78 USD during the period under review, because of tightening supply resulting from production cuts by Saudi Arabia,” the ministry said.
The depreciation of the local Rand against the US dollar was also cited as another contributory factor.
The Rand depreciated on average from 18.28 to 18.67 Rand per US dollar during the past month.
Another reason for the high fuel increase was the decision by Mineral Resources and Energy Minister Gwede Mantashe to approve “a 5.0 c/l increase in the price structures of petrol to accommodate the wage increase for Forecourt employees in line with the Motor Industry Bargaining Council Agreement.”
JN/APA