By Thebe Mabanga
The price of petrol will rise sharply from Wednesday, with petrol increasing by R3.27 per litre and diesel by R6.19, as conflict in the Middle East and a weaker rand over April push up costs, the Department of Mineral Resources and Energy said.
Illuminating paraffin will climb by R4.22 per litre, while liquefied petroleum gas in Gauteng will increase by R5.07 per kilogram.
The increases come as the government has extended fuel levy relief by another month, with a R3 per litre reduction for petrol while the levy on diesel remains at zero.
Following the adjustment, the price of 95 octane petrol will rise to R26.63 per litre in Gauteng and R25.76 on the coast.
The wholesale price of diesel (0.05% sulphur) will cost R32.09 in Gauteng, while 0.005% sulphur diesel will be R32.30. On the coast, the prices will be R31.22 and R31.54 respectively.
The increases are driven by oil prices holding above $100 a barrel, as the conflict involving the United States, Israel and Iran shows little sign of easing.
Earlier in the month, there was brief respite when a ceasefire was put in place, the critical Strait of Hormuz reopened, and talks were set to resume, pushing prices down to about $95 a barrel.
However, talks have since collapsed and the Strait is once again closed.
The United States Federal Reserve Bank has held interest rates on expectations that inflation will be higher for longer on the back of a prolonged war.
Meanwhile, the rand weakened slightly, hovering around R16.64 to the dollar between the end of March and the end of April.
The fuel levy relief measures, expected to cost the government about R17.2 billion in foregone revenue, are set to remain in place until June 3, with no further interventions currently announced beyond that date.
INSIDE POLITICS
