Fuel price adjustments for December 2021 have been announced by the Department of Mineral Resources and Energy and the increases won’t be welcomed by motorists in South Africa.

Minister of Mineral Resources and Energy, Mr Gwede Mantashe, is the bearer of bad news as the Department of Mineral Resources and Energy announces yet another massive fuel price hike that will, as of Wednesday 1 December 2021, see local fuel prices exceed the R20 per litre mark for the first time ever.

Motorists, however, won’t be celebrating this record and the increases come at a time when South African household budgets are being stretched to the max as the cost of living rises.

Fuel price increases for December 2021 are as follows:

Both grades of petrol (93 ULP and 95 LRP) will increase by 81 c/l.Diesel (0.05% sulphur) will increase by 72.5 c/lDiesel (0.05% sulphur) will increase by 74.5 c/lIlluminating Paraffin (wholesale) will increase by 42 c/l

Factors that contributed to rising fuel prices include the depreciating Rand-Dollar exchange rate, increases in the price of crude oil and higher prices of refined petroleum products. As of 1 December 2021, the Slate Levy will also see increased contributions of 26.30 c/l (from 15.36 c/l to 41.66 c/l).

The department commented on the increases, “There is a mismatch between demand and supply, i.e., there is more demand for oil products than the market can supply. The release of millions of barrels of strategic oil reserves by the US Government has done little to dampen the oil prices. Recent Global concerns over the new COVID variant are beginning to dampen oil demand, resulting in lower oil prices”.

Furthermore, the department added, “It is important to appreciate that fuel prices are soaring worldwide due to persistently high crude oil prices. Record pump prices have been experienced in many other countries. The Department is aware of the inflationary nature of the high global fuel prices and the impact on the transport costs for commuters.”

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