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Record Fuel Price Hike Expected in South Africa

Record Fuel Price Hike Expected in South Africa Latest

Cape Town – Motorists are bracing for a significant surge in fuel prices, with both 93 and 95 unleaded petrol set to rise by R1.71 per litre. Diesel users will feel an even sharper pinch, with prices set to climb by a staggering R2.84 per litre, as reported by the Automobile Association (AA). This marks one of the most substantial fuel price hikes in recent memory.

Paraffin and Gauteng’s Fuel Landscape

Illuminating paraffin, often used for heating and lighting in many South African homes, is not exempt from the upward trend. Its price will jump by R2.78 per litre.

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For those in Gauteng, the province’s economic hub, the changes are particularly noteworthy. A litre of 95 unleaded petrol will now cost R24.54, a price not seen since August 2022. Meanwhile, the wholesale price of diesel is set to touch a 2023 peak at R23.05 per litre.

Behind the Surge: International Factors at Play

These increases are attributed to international oil costs and the rand exchange rate, with Brent crude oil prices rising due to production cuts by Saudi Arabia.

But what’s driving these international oil costs? A deeper dive reveals a combination of factors:

  • Production cuts by major oil producers, notably Saudi Arabia.
  • Low inventories in global stockpiles.
  • Refinery outages which disrupt the supply chain.
  • Reduced shipments of Russia’s Urals crude oil, a significant source for many nations.

Furthermore, the local economic landscape plays a role. The rand-dollar exchange rate, a crucial metric for import costs, has seen a dip, moving from R18.28 to R18.67 in just the past month.

September 2023: Fuel Price Breakdown

For those keen on the specifics, here’s how the increases stack up for various fuels:

  • Petrol (93 and 95 Octane): Increase of 171.00 c/l.
  • Diesel (0.05% sulphur): Surge of 284.00 c/l.
  • Diesel (0.005% sulphur): Rise of 276.00 c/l.
  • Illuminating Paraffin (wholesale): Jump of 278.00 c/l.
  • SMNRP for IP: A notable 370.00 c/l increase.
  • Maximum Retail Price of LPGas: An upswing of 226.00 c/kg.

 

As South Africans adjust their budgets to accommodate these changes, it’s clear that both global and local factors are intertwining to shape the nation’s fuel landscape. Whether these prices will stabilize or continue to climb remains a pressing question for many.

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