South African motorists face a record-shattering fuel price hike this Wednesday. Petrol will surge by R3.27 per litre, while diesel users see a staggering R6.19 per litre increase.
This spike pushes 95 Unleaded Petrol to approximately R26.33 per litre from its current R23.06. Diesel is set to hit a record R32.30, up from roughly R26.11.
The Department of Mineral and Petroleum Resources cited on Monday that Brent Crude is breaching the 100-dollar mark. This follows the closure of the Strait of Hormuz due to escalating US-Iran conflict.
“The average Brent Crude oil price increased from 93.67 US Dollars (USD) to 101USD during the period under review. This is due to the continued tension between the US and Iran, the closure of the Strait of Hormuz and damage to other crucial infrastructure which have affected crude oil supply.” The department said in a statement.
The price shock occurs despite a massive emergency intervention. The Minister of Finance slashed fuel levies by 300c/l for petrol and 393c/l for diesel to prevent a total economic collapse.
Illuminating paraffin prices will also jump by R4.22 per litre. These increases come as the national slate account hit a negative balance of over R14 billion in March.
The market remains volatile as infrastructure damage in the Middle East continues. Analysts warn this spike will likely drive inflation higher, straining households already struggling with high living costs.
The Rand remained stable at 16.65 to the Dollar. However, this stability failed to offset the explosive rise in international product prices driven by the Persian Gulf supply shortage.
