Petrol up by more than R3, diesel increases by more than R6

South Africans have been bracing for another steep fuel hike since April’s price announcement, but the May adjustment will still bite, with Gwede Mantashe confirming sharp increases across the board. Both grades of petrol will rise by R3.27 per litre, while diesel will surge by R6.19 per litre, in the latest adjustment by the Department of Mineral and Petroleum Resources (DMPR). The sharp increases are a result of the US-Israel war with Iran, which has pushed up the average Brent crude oil prices due to the closure of the Strait of Hormuz, the critical waterway through which approximately 20% of the world’s oil travels.

DMPR said damage to other critical infrastructure also affected crude oil supply. Mantashe said diesel and paraffin prices (up by R4.22 per litre) rose more than petrol prices because of higher demand and reduced supply from the Persian Gulf. While still a significant blow to motorists, the increases could have been worse had government not moved to extend the fuel levy relief last week.

Finance Minister Enoch Godongwana announced last week that the temporary reduction in the general fuel levy of R3 per litre would be extended until June 2 for petrol, while the relief for diesel has increased by 93 cents. Relief will continue in June, but to a lesser extent, as Godongwana wants to phase out the measures before July. The level of relief is expected to be halved to R1,50 per litre for petrol and R1,96 per litre for diesel, effective from June 3 to June 30.