The Department of Mineral Resources and Energy has announced that fuel increases are coming later this week, although diesel will see prices decrease.
This increase comes on the back of a 86 cent drop in the price of unleaded and lead replacement fuels in July.
On Wednesday 7th August, unleaded and lead replacement fuel in 93 and 95 octane will cost 11 cents more. Diesel on the other hand will decrease by 13 cents (0.05% sulphur) and 14 cents (0.005% sulphur).
“The main reasons for the increase in the oil prices were the rising tensions in the Middle East after Iran captured a British oil tanker which sparked worries about supply disruptions through the Strait of Hormuz, through which about a fifth of the world’s oil flows,” the department told SA News.
Last month the Automobile Association (AA) in South Africa said that despite a strong month of trading, dips in the value of the Rand might contribute to a higher fuel price.
“South African fuel users have to remain vulnerable to the country’s difficult economic position and the vagaries of the international oil price. Anything which shocks oil higher or the Rand weaker has the potential to cause sharp fuel price increases,” warned the AA.[Image – CC 0 Pixabay]