South Africans will need to brace themselves for a steep fuel increase on Wednesday, 2 February, with both 93 and 95 expected to increase by 53c a litre. Motorists utilising diesel will see an increase of between 79c and 80c.
Illuminating paraffin will soar to R1.01 a litre, while the maximum LPGas retail price will dip by R1.24, reports News24.
So, just why the hefty price tag? Local fuel prices are calculated and based on international oil prices, along with the Rand’s strength against the dollar, as South Africa purchases oil in dollars.
The increase comes after Brent crude oil skyrocketed over the past month, partly due to tensions between Russia and Ukraine – a part of the world rich in oil, reports The South African. Global demand has also played a role as the demand for oil increases.
“Concerns regarding the tension between Russia and Ukraine have also affected crude oil prices negatively as the area is a crucial oil and gas infrastructure hub,” Minister of Mineral Resources and Energy Gwede Mantashe said in a statement.
The hefty increase comes after fuel prices were lowered at the start of January by 68c and 71c a litre.
