- Motorists today can expect a mixed bag at the pumps as diesel prices drop, but petrol prices see a moderate hike.
- The prices of illuminating paraffin will decrease, but LP gas will become more expensive by 95c.
- The Department of Mineral Resources and Energy has pointed to the conflict in Ukraine and the energy crisis in Europe as reasons for local petrol prices increases.
The fuel price change is here and it is a mixed bag for motorists. Consumers will find some relief as diesel prices begin to fall from the big increase experienced in October. However, petrol prices are generally on the increase, albeit not a massive hike.
Liquified petroleum gas will also be increased today, according to the Department of Mineral Resources and Energy (DMRE).
The department has outlined the following changes to South Africa’s fuel prices:
- All grades of petrol (93 and 95) will increase by a minimum of 59c,
- Diesel 0.05 percent sulphur will decrease by around R1.57,
- Diesel 0.005 percent will decrease by R1.52,
- Illuminating paraffin decreases by 57c,
- The Single Maximum National Retail Price for illuminating paraffin will decrease by 57c,
- Maximum LP Gas Retail Price will increase by 95c.
The DMRE is blaming today’s petrol price increase on the conflict in Ukraine, according to SA News.
“Petrol prices increased due to higher demand by motorists travelling for the thanksgiving season in the US amid limited supply emanating from the Russia-Ukraine conflict. Increased demand resulted in a decrease in gasoline inventories and higher prices,” says the department.
“Refiners are producing more middle distillates, such as diesel, illuminating paraffin and gas to meet extra winter demand in the Northern Hemisphere and consequently producing less petrol.”
So it seems the situation around Europe’s energy crisis has remained relatively unchanged since October. With Russia stopping the supply of its combustibles to NATO members aiding Ukraine, European nations have been desperately trying to prepare for winter demands.
The energy crisis could see developed nations embrace time-tested South African traditions like loadshedding during the months of December and especially January when demand is expected to be at its highest.
However, these fuel shortages will continue to bleed into developing nations. The DMRE says, “These factors led to higher contributions to the Basic Fuel Price of petrol by 64.87 cents per litre and lower contributions to diesel and illuminating paraffin by 122.47 c/l and 9.09 c/l, respectively.”
The local prices of propane and butane are also expected to see increases as gas imports continue to be priced higher with increased international demand.
[Image – CC 0 Pixabay]
