The price of petrol will increase on Wednesday. [Picture: Reuters]
Motorists are set to experience a bump in petrol prices, thanks to the goings on in the Middle East and the actions of OPEC+. The latest price increase was announced on Monday.
The price of petrol will increase by 37c per litre on Wednesday, while wholesale diesel prices will decrease by 30c (0.05% sulphur) and 36c per litre (0.005% sulphur).
This means motorists in inland provinces, like Gauteng, can expect to pay R25.49 per litre of petrol. Those at the coast will pay R24.70 per litre. These were prices last seen nearly seven months ago.
“The average international product prices for Petrol increased whilst Diesel and Illuminating Paraffin decreased during the period under review,” read a statement by the department of mineral resources and energy (DMRE).
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Factors for increase
The department attributed the latest hike to a weaker Rand versus the Dollar. Tensions in the Middle East were also to blame for increased oil costs – which also play a role in fuel prices this side.
“The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period,” read the statement.
“The average Rand/US Dollar exchange rate for the period 27 March 2024 to 25 April 2024 was 18.9036 compared to 18.8689 during the previous period. This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 2.59 c/l, 2.51 c/l and 2.48 c/l respectively.”
Tension between Iran and Apartheid Israel, manifested in attacks from both sides earlier this month, caused oil prices to surge. The average Brent oil price increased from $84.22 a barrel to $88.10, reported News24.
“There was a lot of volatility in the market during this period,” noted minister Gwede Mantashe in a separate statement. “The main contributing factor is the growing geopolitical tensions in the Middle East and sustained production cuts by OPEC+ countries.”
