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Massive fuel hike to kick in from Wednesday

The Department of Mineral Resources and Energy has announced a massive fuel hike from Wednesday this week.

According to the department, petrol (both 93 and 95) will go up by R1.21 per litre, while the price of diesel (0.05% and 0.005% sulphur) will increase by R1.48 per little.

In addition, a litre of illuminating paraffin is set to cost R1.45 more, the department’s statement read.

Minister Gwede Mantashe, who made the announcement on Monday, said the adjustment of fuel prices was based on current local and international factors with effect from the 3 November 2021.

“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors,” the department explained.

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“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, shipping costs and so on.”

According to the department, the average Brent crude oil price increased from US$75.50 to US$83.40 per barrel during the period under review.

“The Brent Crude oil reached the highest level since October 2018. The key driver is the higher global demand recovery amid a weaker supply response from non-OPEC and other oil producers. The situation was exacerbated by the impact of the current gas challenges experienced by European countries that are having on the prices of energy commodities,” the department said.

In addition, the rand weakened from an average of R14.56 per dollar to R14.72 per dollar.

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