Fuel prices to rise in March, more pain expected as Middle East conflict rages
The Department of Mineral and Petroleum Resources and Energy announced on Monday that the price of both grades of petrol will rise by 20 cents a litre in March.
Diesel will rise by 62 cents per litre and 65 cents a litre, depending on the sulphur content.
The higher prices, which will come into effect on Wednesday, come after the United States and Israel initiated attacks on Iran over the weekend.
This has led to Brent Crude prices skyrocketing to over 70 dollars per barrel, which could lead to further increases at the pumps from April.
Iran's response to the attacks on US allies like the United Arab Emirates has caused fear that Iran could impose a blockade on the Strait of Hormuz, through which 1 out of every 5 barrels of oil travels. With many shipping companies already instructing their fleets to divert.
DMRE said in a statement that one of the reasons for the new prices is the rand's appreciation against the US Dollar.
"This led to higher contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 16.96 c/l, 19.20 c/l and 19.21 c/l, respectively."
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