The price of petrol and diesel is set to rise for the third consecutive month from Wednesday, driven by a higher cost of crude oil and a weaker rand, according to the department of mineral and petroleum resources.
From 1 January, 93-grade petrol will cost 19 cents more, while the price of 95-grade petrol will rise by 12 cents. The cost of diesel will increase by up to 10.50 cents a litre. The wholesale price of illuminating paraffin, which many poor households still use for cooking and lighting, will however decrease by 9.5 cents a litre.
South Africa’s fuel prices are adjusted every month, based on global prices and the rand exchange rate.
During the period under review, the average Brent crude oil price increased slightly from US$72.70 to $72.78. This was after the decision by OPEC+ — the coalition of oil-producing countries — not to increase production in December and continued oversupply by non-OPEC producers amid low economic growth globally.
“The average international product prices of petrol followed the increasing trend of crude oil while the prices of middle distillates decreased slightly because of higher inventories for the winter season in the northern hemisphere,” the mineral and petroleum resources department said in a statement.
“These factors led to higher contributions to the basic fuel prices of petrol and diesel … and lower contributions to illuminating paraffin.”
The rand depreciated on average against the US dollar, leading to higher contributions to the basic fuel prices of petrol, diesel and paraffin, the department added.
Lower fuel prices were a factor behind a sharp easing in inflation during 2024, paving the way for the South African Reserve Bank to cut interests on two occasions, by a cumulative 50 basis points.
