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The Department of Mineral Resources and Energy has officially announced the impending massive fuel price increase, which will take effect on Wednesday.
According to the department, the price of petrol (93 and 95) will rise by R1.21 per litre. Diesel prices (0.05% and 0.005% sulphur) will increase by R1.48 per litre.
According to the department’s statement, with this wallet burning price in mind, a litre of illuminating paraffin will cost R1.45 more. Minister Gwede Mantashe stated that the fuel price adjustment was based on current local and international factors and would take effect on November 3, 2021.
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors,” the department explained.
According to the Department, international factors include the fact that South Africa imports both crude oil and finished products at global prices. This includes importation and shipping costs, among other things.
During the period under review, the average Brent crude oil price increased from US$75.50 to US$83.40 per barrel, according to the department.
“The Brent Crude oil reached the highest level since October 2018. The key driver is the higher global demand recovery amid a weaker supply response from non-OPEC and other oil producers. The situation was exacerbated by the impact of the current gas challenges experienced by European countries that are having on the prices of energy commodities,” the department said.
Furthermore, the rand fell from an average of R14.56 per dollar to R14.72 per dollar.
What are your thoughts on the fuel prices?