Brace yourself for petrol price spike from Wednesday

Both grades of petrol, 93 and 95 ULP and LRP, will increase by 59c per litre.

Both grades of petrol, 93 and 95 ULP and LRP, will increase by 59c per litre.

Published Dec 6, 2022

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Cape Town - Both grades of petrol, 93 and 95 ULP and LRP, will increase by 59c per litre as of Wednesday.

Diesel is meanwhile decreasing by R1.57 per litre and illuminating paraffin by 57.33c.

Mineral Resources and Energy Minister Gwede Mantashe announced the adjustment of fuel prices based on current local and international factors on Tuesday.

The main reasons for the fuel price adjustments include that the average Brent Crude oil price decreased from $90.79 per barrel to $88.77 per barrel during the period under review.

“The oil prices slumped to their lowest level since December 2021 amid fears of lower demand from China due the lockdowns in line with the country’s strict Covid-19 regulations,” Mantashe said.

The movement in international refined petroleum product prices, diesel and illuminating paraffin in particular, followed the decreasing trend in crude oil prices while the prices of petrol increased during the period under review, Mantashe said.

“Petrol prices increased due to higher demand by motorists travelling for the Thanksgiving season in the US amid limited supply emanating from the Russia-Ukraine conflict. Increased demand resulted in a decrease of gasoline inventories and higher prices,” Mantashe added.

“Refiners are producing more middle distillates, such as diesel, illuminating paraffin and gas to meet extra winter demand in the northern hemisphere and consequently producing less petrol.”

Cape Times