MOTORISTS and households continue to bear the brunt of the ongoing geopolitical conflicts as fuel prices will increase again tomorrow.
Motorists and households will pay more for petrol, diesel and illuminating paraffin.
Ministry of Natural Resources and Energy Principal Secretary Lindiwe Mbingo said the hike to be effective tomorrow would see petrol increase by E1.30 per litre, while diesel and illuminating paraffin will each rise by E1.35 per litre.
The new prices will take effect at midnight, meaning consumers will pay the increased prices from tomorrow. Unleaded petrol will rise from E24.67 to E25.97 per litre, while diesel will increase from E27.50 to E28.85 per litre. Illuminating paraffin will rise from E20.38 to E21.73 per litre.
The ministry attributed the latest increase to rising international crude oil prices, which averaged US$89 per barrel in August, up from US$87 in July.
Mbingo said shipping risks in the Strait of Hormuz amid the Middle East conflict, together with an extended Russian export ban on diesel following damage to refining infrastructure by Ukrainian drone strikes in early July, had severely constrained global fuel supplies and placed upward pressure on prices.
The Lilangeni also appreciated slightly against the United States dollar, averaging E16.11 in August compared to E16.46 in July. However, the ministry said international oil markets and the exchange rate remained volatile.
The September increase is the latest in a series of fuel price adjustments this year, although prices have moved both upwards and downwards since April.
The year started with a sharp increase in April, when petrol rose by E2.90 from E19.45 to E22.35 per litre. Diesel recorded an even steeper E5.35 increase, from E19.85 to E25.20, while paraffin rose by E5.30, from E14.20 to E19.50.
The April increases followed a surge in Brent crude prices, which averaged US$104 per barrel in March, compared to US$69 in February.
The ministry said the local market had accumulated deficits of up to E12.14 per litre, with government committing to use the Strategic Oil Reserve Fund to cushion consumers.
May brought the year’s biggest single upward adjustment as petrol price increased by E2.92 to E25.27 per litre, while diesel surged by E6.40 to a record E31.60 per litre. Paraffin rose by E6.78 to E26.28 per litre.
These remain the highest prices recorded for the respective products so far this year. Diesel’s E31.60 per litre in May was the highest price reached by any of the three fuel products during the period under review, followed by paraffin at E26.28 in May and petrol at E26.17 in June.
The May increases were blamed on the continuing Middle East conflict and restrictions on shipping through the Strait of Hormuz. At the time, international crude oil averaged US$110 per barrel.
June, however, brought mixed relief to consumers. Petrol increased by 90 cents to E26.17 per litre, but diesel fell by E2.40 to E29.20 and paraffin declined by E2.90 to E23.38.
Fuel prices then fell across the board in July following a decline in international crude oil prices. Petrol dropped by E1.50 to E24.67 per litre, while diesel and paraffin each fell by E3 to E26.20 and E20.38 respectively.
The downward trend did not last as in August, diesel increased by E1.30 to E27.50 per litre, while petrol and paraffin remained unchanged at E24.67 and E20.38 respectively.
The September adjustment will therefore push petrol by E1.30 above its July-August price, diesel by E2.65 above its July price and paraffin E1.35 above its July-August price.
Despite the latest increases, the September prices remain below the peaks reached earlier in the year. Petrol is 20 cents below its June high of E26.17, diesel is E2.75 below its May high of E31.60, while paraffin is E4.55 below its May high of E26.28.
However, compared with the prices that took effect in April, all three products are now considerably more expensive. Petrol has risen by E3.62 per litre from E22.35, diesel by E3.65 from E25.20, and paraffin by E2.23 from E19.50.
The ministry has urged consumers to use fuel efficiently as global oil markets remain volatile.
