Record petrol high of over R19.50 a litre in Gauteng/ inland provinces from Wednesday

With the nationwide petrol price surging by R1.21 per litre, while diesel will rocket R1.48 a litre.
Picture: Moneyweb

South African fuel prices will hit record highs as of Wednesday, with the price of petrol spiking to over R19.50 a litre in the economic hub of Gauteng and other inland provinces.

This comes as the Department of Mineral Resources and Energy (DMRE) announced on Monday night that the price of petrol (both 93 and 95 ULP & LRP) will increase by R1.21 a litre and diesel (0.05% and 0.005% sulphur) by R1.48 a litre as of November 3.

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According to the DMRE, illuminating paraffin (wholesale) will increase by R1.45 per litre, while illuminating paraffin (SMNRP) will surge by R1.93 a litre. The maximum LPGas retail price will rocket by R2.90 a kilogram.

Read: Motorists could see ‘catastrophic’ fuel price hikes, AA warns

The surge in fuel prices comes largely on the back of the spike in international crude oil prices and a weakening rand.

This will put even more pressure on the South African Reserve Bank to hike interest rates when its Monetary Policy Committee meets later this month.

The latest fuel price increases announced by the DMRE are even higher than those forecast by the Automobile Association in October.

In its statement, the DMRE noted that the price of Brent crude oil reached its highest level since October 2018.

“The average Brent crude oil price increased from $75.50 to $83.40 per barrel during the period under review [October 1 to October 27] … The key driver is the higher global demand recovery amid a weaker supply response from non-Opec and other oil producers,” said the department.

“The situation was exacerbated by the impact the current gas challenges experienced by European countries are having on the prices of energy commodities,” it added.

The DMRE also noted that the rand depreciated (on average) against the US Dollar, from R14.56 to R14.72, during the period under review.

“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by over 15 cents per litre,” it said.

The department pointed out that the fuel prices schedule for the different zones (coastal and inland provinces) would be published later on Tuesday (November 2, 2021).

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Ah, yes, I recall how the unions bemoaned the strong rand, at one stage. Our exports would grow immeasurable, they contended. There was also a government person – maybe a minister, even – who said that the only people affected by a weak rand were the tourists. The fallacy of these points of view was pointed out then, and here we go: a weak rand, high fuel costs, and pressure on our finances from all angles.

Might seem like a blow in the short term but actually its a good thing as it forces people to consider more fuel-efficient cars and new technology.

From next year we will see more and more EVs coming onto the market with hopefully something affordable in the mix. Personally, we will be looking at the new Corolla Cross hybrid. I feel a hybrid is the best option right now, you still have the versatility of being able to fill up but you can enjoy electric power when sitting in traffic or cruising on the freeway which greatly reduces your fuel bill.

Unfortunately it doesn’t help with the expense of shifting goods from A to B which is a major one, considering our rail network is increasingly being reduced to third world status.

I gather the price of Second hand Donkeys is rocketing : A premium for those with red Berets on !

You seem like the type of person who would argue that rising food prices are a good thing because it will help people eat less and control their weight better..

“…it forces people to consider more fuel efficient cars…”

For 90% of the population, the conversation will go as follows:

Mrs Khumalo about to enter a minibus taxi, asking the driver:

“How fuel efficient is your vehicle…?”

(silence follows…)

So as the purge rages on to “Exile” carbon fuels and banish those companies by banks and investment companies, moving investments into ESG funds…and people bemoan the creep of inflation by high fuel costs in transport

Lets see when the carbon companies further restrict research and investments into new carbon reserves how everyone will be forced to pay more to live

Lets all start with ditching our gas & wood braii’s (those evil carbon emitters)with solar reflector hot-plates and retire our generators for peddle dynamo’s (in the living room) to charge our inverters …thats where the woke brigade will ignorantly lead us too

Interesting times ahead

approx. a third is tax – let that sink in

September inflation = 5%

What a joke! Clearly it’s a clown world. They’re taking the majority of people for sheep, which they clearly are.

US inflation = 5.4%

But if calculated using the older CPI method it would be 14%, so I don’t even want to guess how far north of 20% the Rand inflation actually is.

End of comments.

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