Huge increase in fuel price a blow to cash-strapped consumers
The Department of Mineral Resources and Energy has announced a record increase in the price of petrol of between 95 cents and R1 per litre for April 2021.
Diesel is set to increase between 63 and 65 cents per litre.
The new prices are set to take effect on Wednesday, 7 April, shortly after the Easter long weekend.
The main reason for the significant fuel price adjustment, according to the Department, is an average Brent crude oil price increase from $61.10 to $64 per barrel during the period under review.
The department says the dramatic price fluctuation for crude oil can be attributed to the vessel stuck in the Suez Canal causing a delay for all cargo containers including oil tankers, as well as the expected increased economic activity in the U.S. due to the approval of their economic stimulus.
Additionally, the rand depreciated, on average, against the US Dollar (from 14.76 to 14.95 Rand per USD) during the period under review when compared to the previous one.
Furthermore, the Minister of Finance, announced in his Budget Speech in February that the Fuel and Road Accident Fund (RAF) Levies on both petrol and diesel will increase by 16 cents per litre and 11 cents per litre respectively, with effect from the 7th of April 2021.
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