MINERAL Resources and Energy Minister Gwede Mantashe announced an adjustment to fuel prices on Monday, with the price of the lowest graded petrol to increase by at least 28c.
The fuel price increase has been cushioned by the government’s temporary R1.50 reduction in the general fuel levy, which was announced by Finance Minister Enoch Godongwana last week.
The government’s intervention to reduce the general fuel levy by R1.50/litre for April and May means that the petrol price is expected to increase by ‘only’ about 30 cents per litre on Wednesday, although diesel should still go up by about R1.50/litre.
Mantashe gave reasons for the fuel hike, such as the continued sanctions imposed on Russia, despite Russia’s discounted crude oil prices.
“This is disrupting energy flow as Russia is one of the biggest global exporters of oil,” said Mantashe.
Last week, the oil price moved sharply lower after the US announced it would release one million barrels per day from its strategic reserves from May.
The releases are set to last for six months with the 180 million barrel total release the biggest ever from the US Strategic Petroleum Reserve. In line with its long-stated production schedule, OPEC+ is also set to push up output, by 432,000 barrels per day from May.
- Inside Politics
