The Energy Department has announced that both grades of petrol, 93 and 95 octane will increase by 81 cents per litre from Wednesday 1 December.
The prices of diesel (0.05% sulphur) increases by 72.5 cents per litre, while Diesel with (0.005% sulphur) increases by 74.5 cents per litre while illuminating paraffin will increase by 42 cents per litre.
The price of LP gas increases by R1.83 per kg.
The Energy Department says the main reason for the fuel price adjustments is the Rand depreciated, on average, against the US Dollar (from 14.72 to 15.85 Rand per USD) during the period under review when compared to the previous one.
It also says the average Brent Crude oil price increased from 82.50USD to 83.00USD per barrel during the period under review.
“The key driver is the higher global demand recovery amid a weaker supply response from non-OPEC and other oil producers. There is a mismatch between demand and supply, i.e., there is more demand for oil products than the market can supply. The USA and other major oil consumers are coordinating efforts to try to lower high prices by releasing oil from their inventory stocks, while OPEC and Non-OPEC members are refusing to increase oil production to match the global recovery demand.”
The department says the increase also included the Slate levy.
“An increase of 26.30 c/l (i.e. from 15.36 c/l to 41.66 c/l) will be implemented into the prices structures of petrol and diesel in line with the Self-Adjusting Slate Mechanism rules effective from the 1st of December 2021. The combined cumulative Slate balances of petrol and diesel amounted to a negative R4.689 billion at the end of October 2021.”
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.