Fuel price to increase by over one rand on Tuesday

Authorities say the price of both grades of petrol will increase by R1.18 cents per litre from midnight on Tuesday. Diesel will increase by 22 cents and illuminating paraffin by 40 cents a litre.

The Central Energy Fund says the average international prices for petrol, diesel and illuminating paraffin increased during the period under review. The rand also appreciated against the US dollar – capping part of the increase.

The rand is currently trading at R17.42 against the US dollar and R19.40 against the euro.

Massive drop recorded in May 2020

In May,  motorists paid R1.74  less for a litre of fuel.

The price of diesel went down by R1.61 cents per litre and illuminating paraffin by R2.23 cents per litre.

Plummeting oil prices caused by a virtual halt in global economic activity during the coronavirus pandemic led to the decrease.

However, it would have been more at the time if the rand had not depreciated against the US dollar.

Oil price crashed

US crude oil futures collapsed below $0 in early May for the first time in history, amid a coronavirus-induced supply glut.

Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.

April also saw fuel much cheaper

The petrol price dropped by almost R2 per litre on April 1, although the nationwide lockdown Level 5 at the time meant most motorists did not benefit from it.

The price of all grades of petrol has decreased by between R1. 76 cents and R1. 94 cents per litre.

Motorists also paid between R1.35 cents and R1. 41 cents less per litre for diesel. The price of Illuminating paraffin also decreased R1.88 cents per litre.

The fuel price adjustments do not include the general fuel levy which has gone up by 16 cents per litre and the Road Accident Fund levy which had increased by 9 cents per litre.