On Wednesday, the price of unleaded petrol (both 93 and 95), will increase by 51c a litre, while diesel will rise by R1.43.
The Department of Mineral Resources and Energy (DMRE) announced the prices for both grades of petrol and diesel would increase on Wednesday.
The Gauteng price for diesel will be pushed to R25.49 a litre which will set a new record high. The price of diesel was about R17.20 per litre in Gauteng just over a year ago.
Moreover, illuminating paraffin will increase by 77c per litre but LP Gas will see a decrease of about 98 cents.
The average international product prices for petrol and illuminating paraffin decreased during the period under review.
The rand depreciated against the US dollar during the period under review, when compared to the previous period. The average rand/US dollar exchange rate for the period 30 September to 27 October 2022 was 18.1099 compared to 17.5547during the previous period.
This led to the higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin respectively.
The rand weakened from an average of R17.55/$ in September to R18.11 in October, while the average price of Brent crude oil increased from $89.79 to $92.41 per barrel.
“The higher demand and continued low supply of diesel led to a higher increase of diesel prices compared to petrol,” said the department.
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs,” said DMRE.
In South Africa, the continued problems with railways have increased truck deliveries, increasing the local demand for diesel. A shortage of diesel supplies has also contributed to load shedding.
Source: News24 Business, My Broadband, Eyewitness News, The South African, Business Tech, image from Twitter: @SA_Mum