The department of mineral resources and energy (DMRE) has announced the petrol price will increase at midnight by between R2.33 and R2.43/l , while diesel and illuminating paraffin will rise by R1.10/l and R1.56/l, respectively.
It raises the inland price of petrol to a record R24.17 for 95 unleaded and R23.94 for 93 unleaded. The wholesale price of diesel also reaches new record highs, with high-sulphur 0.05% diesel inland priced at R23.09 and low-sulphur 0.005% at R23.23.
However, the price hikes would have been worse had government not extended the R1.50 fuel levy holiday that was due to have expired today. Earlier today, the ministers of finance and mineral resources and energy announced the relief would be extended for another two months.
According to a joint media statement published on the National Treasury website, this will take the form of a continuation of the relief of R1.50 per litre for the first month, from June 1 to July 6, and then a downward adjustment to the relief for the second month to 75c per litre from July 7 to August 2. The temporary relief will be withdrawn from August 3.
Without this extension, already cash-strapped motorists would have been hit by a petrol price hike of around R4, pushing the price of 95 octane unleaded petrol over the R25 a litre mark.
The ministers announced on March 31 that the Demand Side Management Levy (DSML) of 10c/l on 95 unleaded petrol sold inland would be terminated with effect from June 1 2022.
The central energy fund (CEF) attributed the latest price hikes to the increase in international petrol, diesel and paraffin prices during the period under review, and the rand depreciating against the dollar.
The average Rand/US Dollar exchange rate for the period April 28 to May 26 was 15.95 compared to 14.89 during the previous period. This led to a higher contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 99.49 c/l, 104.69 c/l and 104.47 c/l respectively.