South African motorists will feel a pinch in their pockets when filling up their cars from Wednesday, as the Department of Mineral Resources and Energy announced a hike in petrol prices.
Both 93 and 95 unleaded petrol will increase by 37 cents a litre, while diesel will be reduced. The changes will result in a general fuel levy of R3,96 a litre for petrol and R3,82 a litre for diesel.
The Department of Mineral Resources and Energy explained that the rise in petrol prices was due to the beginning of the so-called driving season in the US and faster economic growth in China, leading to an increase in international petrol prices.
However, the prices of middle distillates, which include diesel and paraffin, were lower due to an oversupply in the markets.
The prices of fuel are also affected by the global price of oil, which has increased from $79.24 a barrel to $82.20 over the past month, and the rand-dollar exchange rate.
The rand has strengthened from R18.30/$ to R18.20, which has helped reduce the price of diesel.
The wholesale diesel price will now be R20.15 a litre, a significant drop from close to R25.50 in November last year.
Despite the reduction in the price of diesel, the increase in petrol prices will undoubtedly have a significant impact on South Africans’ already stretched budgets.
It is essential to plan ahead, keep an eye on fuel prices, and try to save where possible to mitigate the impact of these regular increases.
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