Petrol and diesel prices to be hiked this week

Petrol and diesel prices will be hiked on Wednesday, with oil having become more expensive due to stronger Chinese demand.

Unleaded petrol (both 93 and 95) will increase by 28c a litre, while diesel will be hiked by between less than a cent and around 9c a litre.

Paraffin will increase by 58c a litre, and the maximum retail price of LP gas will fall by R1.40 a kilogram.

The latest price hikes will push Gauteng petrol to R21.68 a litre, from R20.14 a year ago. Petrol peaked at R26.74 in July last year.

Gauteng diesel will climb to as much as R21.32 a litre, from R18.04 in February 2022. Diesel was close to R25.50 in November last year.

The fuel prices are usually adjusted on the first Wednesday of a month and determined by the price of international oil and fuel prices and the rand-dollar exchange rate.

The Department of Mineral Resources and Energy said the average Brent oil price increased from $85.08 per barrel to $86.16 over the past month due to the re-opening of the Chinese economy following strict lockdowns. A stronger rand could not prevent fuel price hikes.

“The movement in international refined petroleum product prices, diesel, petrol and illuminating paraffin in particular followed the increasing trend in crude oil prices, while the prices of LP Gas decreased due to lower propane and butane prices during the period under review,” the department said.

Earlier this month, the Automobile Association (AA) warned government against hiking fuel levies in Finance Minister Enoch Godongwane’s Budget Speech in Parliament next month.

“Consumers can simply not afford any more price shocks, and considering the impending 18.65% increase to electricity rates [which will take effect in April], an increase to the levies will deal a massive blow to personal finances,” says the AA.

“[Increases] to the two fuel levies will be counter-productive, are ill-timed, and have disastrous outcomes for millions of people already struggling to make ends meet.” – www.news24.com