South African motorists are facing a sharp increase in fuel prices from October 7 as the ongoing Iran war pushes global oil and shipping costs higher.
The price of 95-grade petrol will rise by R3.33 per litre, taking the price in inland areas such as Gauteng to a record R30.25 per litre. Coastal motorists will pay R29.38 per litre.
The increase represents roughly a 12 percent jump in the petrol price.
The wholesale price of 0.005 percent sulphur diesel will also rise by R3.24 per litre, reaching R33.29 in inland areas and R32.03 along the coast. The 0.05 percent sulphur grade will increase by R2.84 per litre.
Oil prices drive higher fuel costs
South Africa’s Department of Mineral and Petroleum Resources said the increase was largely driven by higher international crude and petroleum-product prices.
Average Brent crude prices rose from $87.89 to about $101 per barrel during the review period. The government attributed the increase to continued US-Iran tensions, uncertainty over oil flows through the Strait of Hormuz, higher shipping costs and declining inventories.
International prices for petrol, diesel and illuminating paraffin also increased as global inventories fell, adding further pressure to South Africa’s fuel-price formula.
South Africa imports both crude oil and finished petroleum products, meaning international energy prices have a direct impact on domestic fuel costs.
Petrol crosses R30 for the first time
The latest adjustment pushes South Africa’s 95-grade petrol price above R30 per litre in inland areas for the first time.
Petrol 93 will rise by R3.12 per litre, reaching R29.88 inland and R29.09 at the coast.
Diesel 0.005 percent sulphur will increase to R33.29 inland, while 0.05 percent sulphur diesel will reach R31.95.
The price of illuminating paraffin will also increase by R3.58 per litre at wholesale level, while the maximum retail price of LPG will rise by 42 cents per kilogramme, with a 48-cent increase applying in the Western Cape.
Rand offers little relief
The rand’s average exchange rate against the US dollar remained broadly stable during the review period, strengthening slightly from 16.2139 to 16.2123 per dollar.
The stronger rand reduced the contribution to fuel prices marginally, but the impact was too small to offset the surge in international oil and petroleum-product prices.
The latest increase adds to pressure on South African households and businesses, particularly because higher fuel costs can feed into transportation, food and other operating expenses.
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