Middle East tension spoils petrol party in SA for November

4 Nov 2024

Minister of Mineral and Petroleum Resources, Gwede Mantashe, announced the latest adjustments to South Africa's fuel prices in a media statement today. The increases are driven by both international and local factors such as crude oil prices and international shipping costs, alongside the rand/US dollar exchange rate.

Middle East tension spoils petrol party in SA for November

The biggest contribution to the increase is the Brent Crude oil price which increased from $72.82 to $75.07 per barrel.

This rise is primarily attributed to ongoing geopolitical tensions in the Middle East, particularly the conflict involving Iran and Israel.

The new Act could see a proliferation of oil rigs along South African shores.

New Act swings energy balance in favour of Mantashe policy

Lindsey Schutters 1 Nov 2024

Elevated crude prices have had a direct impact on the cost of imported fuel and a massive effect ion import markets like South Africa.

International petroleum product prices also climbed, mirroring the increase in crude oil costs.

Currency gains wiped out

Despite a slight appreciation in the rand (from R17.68 to R17.53/$), the stronger currency provided some relief, reducing the fuel price increase by more than 8.00 c/l across all products.

The cumulative slate balance for petrol and diesel stood at a positive R5.6bn by the end of September 2024.

Under the Self-Adjusting Slate Levy Mechanism, this positive balance means that no additional levy will be applied this month.