Diesel prices have been reduced significantly, while petrol prices have risen

The price of 93 and 95 unleaded petrol will rise by 59c per litre on Wednesday, while diesel will fall by between R1.52 and R1.57 per litre.

In Gauteng, 95 petrol will cost R23.46 per litre beginning Wednesday, up from R20.29 a year ago, but down from a high of R26.74 in July.

The Gauteng diesel price, which hit a new high of R25.49 per litre in October, will fall to R23.92 per litre. Gauteng’s diesel price was around R17.93 per litre a year ago.

The price of illuminating paraffin will fall by 57 cents per litre on Wednesday, according to the Department of Mineral Resources and Energy.

Because oil is priced in US dollars, local fuel costs are determined by global oil prices and the rand/dollar exchange rate.

The rand rose from an average of R18.11 to R17.43 per dollar in October, while the average Brent oil price fell from $90.79 to $88.77 per barrel.

In November, oil prices fell to their lowest level since 2021.

Oil was under renewed pressure as concerns about the Chinese economy grew. While China’s daily Covid-19 cases reach new highs, strict lockdowns are in place, threatening China’s economic growth.

Petrol prices increased due to higher demand by motorists travelling for the Thanksgiving season in the US amid limited supply emanating from the Russia Ukraine conflict. Increased demand resulted in a decrease of gasoline inventories and higher prices,” the department said.

“Refiners are producing more middle distillates, such as diesel, illuminating paraffin and gas to meet extra winter demand in the Northern Hemisphere and consequently producing less petrol.”

From this week, the government also approved an increase of 21.26 cents per litre in the industry’s annual margin adjustments for petrol and a net increase of 0.67 cents per litre for diesel. This included a 5.5c/l increase in gasoline prices to accommodate wage increases for forecourt employees as a result of a Motor Industry Bargaining Council agreement.