Fuel price shock as massive increases take effect

Source: Magnific

The adjustment to prices from Wednesday is as follows:

• Petrol 93 (ULP and LRP): R3.12 increase.
• Petrol 95 (ULP and LRP): R3.33 increase.
• Diesel (0.05% sulphur): R2.84 increase.
• Diesel (0.005% sulphur): R3.24 increase.
• Illuminating Paraffin (wholesale): R3.58 increase.
• Single Maximum National Retail Price for Illuminating Paraffin: R4.77 increase.
• Maximum Retail Price of LPGas: 42c increase and 48c increase in the Western Cape.

“The average Brent Crude oil price increased from $87.89 to $101 during the period under review. The increase is due to the continued US/Iran tensions, uncertainty regarding the flow of oil through the Strait of Hormuz, higher shipping costs and decreasing inventories.

“The average international product prices of petrol, diesel and illuminating paraffin increased due to supply shortages caused by lower global inventories of products.

“These factors led to higher contributions to the Basic Fuel Prices (BFP) of petrol, diesel and illuminating paraffin by 329.07c per litre (c/l), 280.17 c/l and 357.23 c/l, respectively. The prices of Propane and Butane also increased during the period under review due to supply uncertainties,” the department said.

Additionally, the rand strengthened against the dollar, leading to lower contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by 0.17 c/l, 0.22 c/l and 0.21 c/l.