Fuel prices set to breach R30 as record increases take effect

South African motorists will face record fuel prices from Wednesday, 7 October, after the Department of Mineral and Petroleum Resources announced substantial increases in the prices of petrol, diesel and illuminating paraffin.

The price of 95 Unleaded petrol will increase by R3.33 a litre, while 93 Unleaded, available in inland regions, will rise by R3.12. The price of 500ppm diesel will increase by R2.84 a litre and 50ppm diesel by R3.24. Wholesale illuminating paraffin will rise by R3.58 a litre.

The increases will push the inland price of 95 Unleaded above R30 for the first time, to R30.25 a litre in Gauteng. The price of 93 Unleaded will rise to R29.88, while 95 Unleaded will cost R29.38 a litre at the coast.

Wholesale 500ppm diesel will rise to R31.08 a litre at the coast and R31.95 in Gauteng. For 50ppm diesel, the respective prices will be R31.93 and R32.80. Retail diesel prices are expected to range between R33 and R35 a litre, depending on the outlet.

The increases will also raise the cost of running vehicles. For a small hatchback consuming 5.5 litres per 100km, the fuel cost per kilometre will rise from R1.47 to R1.65.

A compact SUV using 8 litres per 100km will see its cost increase from R2.14 to R2.40 per kilometre, while a diesel-powered bakkie consuming 9 litres per 100km will rise from R2.88 to R3.16.

The latest increases follow the government's decision not to reintroduce fuel-tax relief measures that had provided some relief to motorists and transport operators earlier this year.

In April, the government reduced the General Fuel Levy by at least R3 a litre for two months. Mineral and Petroleum Resources Minister Gwede Mantashe said last month that there were no immediate plans for similar relief.

The increases mark a sharp rise in fuel prices over the course of the year. The price of 95 Unleaded petrol at the coast has risen from R19.92 in March to R29.38, an increase of almost R10 a litre. Wholesale 500ppm diesel has increased from R17.70 in March to R31.08, a rise of about R13.

Higher international oil prices have been a major driver of the latest increases, with tensions in the Middle East and concerns over disruptions to crude oil supplies and shipping adding pressure to global energy markets.

The Strait of Hormuz, a major route for global oil shipments, remains a particular concern for energy markets.

With fuel prices now at record levels, the increases are expected to place further pressure on household and transport costs.