Petrol prices will increase by 37 cents per litre, while diesel will be going up by 71 and 72 cents per litre as of Wednesday, 2 August 2023. This comes as the Department of Mineral Resources and Energy published the official fuel price adjustments for August. 

The average international product prices for Petrol, Diesel and Illuminating Paraffin increased during the period under review.

ALSO READ: Young Limpopo farmer carrying solutions to high demand for vegetables

Local fuel prices are determined by the oil price and the rand/dollar exchange rate, as oil is priced in dollar.

While the rand firmed over the past month, the Department of Mineral Resources and Energy said that the hikes were due in part to an increase in the Brent oil price from $75.10 to $79.75 a barrel.

This was because oil demand increased from China and India. Saudi Arabia also continued to cut its production.

HIKE IN PETROL AND DIESEL PRICES

“The data is showing that the main driver behind the expected increases is international oil prices,” said the AA‘s Layton Beard.

“It escalated steadily throughout the month. Easing some of the pressure on fuel prices is the rand which improved its value against the US dollar.”