After a period of relief for Newcastillians, with back-to-back decreases in fuel prices over recent months, the upcoming adjustments are expected to bring unwelcome news.
The prices of all grades of fuel, as well as petrol and gas, are set to increase on Wednesday, 6 November 2024.
This announcement was made by the Department of Mineral and Petroleum Resources (DMPR) on Monday, 4 November 2024. The increases are detailed as follows:
- Petrol 93 (ULP & LRP): 25c increase
- Petrol 95 (ULP & LRP): 25c increase
- Diesel (0.05% sulphur): 21c increase
- Diesel (0.005% sulphur): 20c increase
- Illuminating Paraffin (wholesale): 21c increase
- Single Maximum National Retail Price for illuminating paraffin: 28c increase
- Maximum LPGas Retail Price: 36c increase
As of Wednesday, a litre of 95 petrol, which currently costs R21.05 in Gauteng, will rise to R21.30. Along the coast, the price for a litre of 95 petrol, which was R20.26 in October, will increase to R20.51 in November.
The department explained that both international and local factors have contributed to these price adjustments. “The average Brent Crude oil price increased from 72.82 US Dollars (USD) to USD 75.07 per barrel during the period under review. The main contributing factor is the continued conflict in the Middle East and the stand-off between Iran and Israel.”
Furthermore, the department noted that the average international petroleum product prices increased in line with the higher oil prices. This resulted in higher contributions to the Basic Fuel Prices: petrol by 33.56 cents a litre and 21.55 cents a litre; diesel by 30.33 cents a litre and 28.58 cents a litre; and illuminating paraffin by 29.79 cents a litre.
In a somewhat positive turn, the department mentioned, “The Rand slightly appreciated on average against the US Dollar (from 17.68 to 17.53 Rand per USD) during the period under review. This led to lower contributions to the Basic Fuel Prices of all products by over 8.00 cents per litre.”
As fuel prices are set to rise, what are your thoughts on this situation? Please share your views in the comment section below.
