Compiled by Anita Dangazele
- Petrol goes up by over three rand a litre and diesel jumps by more than six rand this coming Wednesday.
- The war in the Middle East pushed global oil prices higher and the state added a heavy tax to fuel.
South Africans face a massive financial hit this Wednesday. Fuel prices are shooting up. It will cost much more to travel and buy food.
Petrol goes up by R3.27 a litre. Diesel takes an even bigger knock and jumps by R6.19 a litre. This pushes diesel to a new record high.
A litre of 95 Unleaded petrol will cost R25.80 at the coast and R26.33 inland. Drivers inland will pay R26.52 for 93 Unleaded.
The wholesale price of diesel will rocket to R31.54 at the coast and R32.30 in Gauteng. Petrol stations will add up to three rand more to the final price.
Two things caused this massive jump. Global oil prices spiked because of the war in the Middle East. Oil now costs more than US$100 a barrel.
The state also added a heavy levy to pay back fuel companies for past losses. This added another R1.22 to the price of every litre.
Finance Minister Enoch Godongwana stepped in to keep a tax cut for May. He kept a cut of R3 a litre for petrol and R3.93 for diesel. Without this help, the price shock would be much worse.
This tax relief is ending soon. The state will cut it in half in June. They will scrap it completely in July.
Drivers could face even bigger price shocks next month. If the war in the Middle East continues, oil prices will climb higher.
This diesel shock hurts everyone. Trucks burn diesel to move food across South Africa. Investec chief economist Annabel Bishop says these fuel jumps will push up inflation and the cost of living.
Pictured above: A petrol pump.
Image source: File
