South Africa experiences Fuel Hike, takes effect from Today

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The Department of Mineral Resources and Energy announced on Tuesday that new fuel prices would come into effect on Wednesday, June 1.

According to the statement released by the department on Tuesday afternoon, the average price of Brent crude oil had increased from $104.78 to $115.

The department explained that the main contributing factors were the increasing demand amid the summer driving season in the northern hemisphere and the European Union’s discussions on possible sanctions on crude oil and petroleum products from Russia.

Before the announcement, Mineral Resources and Energy Minister Gwede Mantashe and his finance counterpart, Enoch Godongwana, announced an additional extension on the temporary reduction in the general fuel levy of R1.50. This is the second temporary reduction since the first implementation for April to May.

“This will take the form of a continuation of the relief of R1.50 per litre for the first month, from 1 June 2022 to 6 July 2022, and then a downward adjustment to the relief for the second month, to 75c per litre from 7 July 2022 to 2 August 2022,” the joint statement from the two ministers read.

However, the ministers said the government would continue to monitor the impact of the Russia/Ukraine conflict and zero-Covid policies, “which continue to have an impact on energy and food prices and result in supply chain shocks, with the aim of investigating further measures to make households and businesses less vulnerable to such shocks”.

In a joint statement released on Tuesday afternoon, Western Cape premier Alan Winde and provincial minister of mobility, Daylin Mitchell, raised their concerns over the increased fuel costs.

“These escalating prices will make it more expensive to live, eat and travel in South Africa, and will undoubtedly hit our most vulnerable residents the hardest,” said Winde, who supported calls for the national government to scrap the general fuel levy.