/ 30 November 2021

Petrol jumps over R20 a litre inland

Petrol Attendant Strike: Numsa Rejects Wage Offer
The retail price of petrol will increase by 37 cents a litre from Wednesday for both the 93 and 95 octane grades

The fuel price hike set for 1 December will push the cost of petrol – currently around R19.50 a litre – to above R20 in Gauteng and other inland provinces.

The petrol price will rise by 81c a litre, while diesel will go up by between 72.5c a litre (0.05% sulphur) and 74.5c (0.005% sulphur), the department of mineral resources and energy announced on Monday.

Illuminating paraffin, used for cooking and lighting by millions of South Africans who either have no access to or cannot afford electricity, will cost 42.2c/l more.

At the start of November, petrol prices were hiked by R1.21, while diesel increased by R1.48.

Local fuel prices are determined by international oil prices and the dollar:rand value.

The average brent crude oil price increased to its highest level since October 2018. 

“It is important to appreciate that fuel prices are soaring worldwide due to persistently high crude oil prices,” the energy department said.

“The key driver is the higher global demand recovery amid a weaker supply response from non-OPEC [Organisation of Petroleum Exporting Countries] and other oil producers.”

The rand depreciating against the dollar did not help matters. It averaged at R15.85 to the dollar over the past month, compared to R14.72 to the dollar the previous month.

The slate levy will also be hiked from 15.36c per litre to 41.66c. The levy is paid to fuel companies to compensate them for imbalances that build up over time due to the way that the basic fuel price is calculated. 

Earlier this month, the Automobile Association projected that the petrol price would close in on R20 a litre in the run-up to Christmas.