Very High Fuel Hike

South Africa -On Wednesday, petrol prices will be increased due to a worldwide supply crunch, according to an announcement made by the Department of Mineral Resources and Energy on Monday night.

Both 95 and 93 unleaded petrol will be hiked by R1.27 a litre, while diesel will go up by between 30c and 32c. Illuminating paraffin will increase by 13c a litre, while the maximum retail price for LP gas will be hiked by R5.22 a kilogram. The price of a litre of 95 unleaded petrol in Gauteng will increase to R22.95, while it will increase to R22.30 on the coast. Diesel will reach R21.62 in Gauteng. The rand and oil price are the two main factors affecting fuel prices. The rand weakened from R17.04/$ to R18.40 on Monday, while the average Brent crude oil price decreased slightly from $83 per barrel to $82.14. Petrol prices are increasing at a higher rate than diesel because of lower inventory levels globally and closures of refineries in some countries for seasonal maintenance. The impact of EU sanctions on diesel imports from Russia was already priced in.