JOHANNESBURG, March 31 (Xinhua) -- South Africa's Department of Mineral and Petroleum Resources on Tuesday announced fuel price increases, with petrol and diesel set to rise sharply from midnight as global oil prices continue to climb.
According to the department, the price of petrol 93 and petrol 95 will increase by 3.06 rand (about 0.18 U.S. dollars) per liter, while diesel will rise by between 7.37 rand and 7.51 rand per liter.
The government said the adjustments were mainly driven by a surge in international crude oil prices and a weaker rand against the U.S. dollar during the review period.
"The average Brent crude oil price increased from 69.08 dollars to 93.67 dollars during the period under review. This is due to the continued tension between the United States and Iran, which has affected crude oil supply, especially through the Strait of Hormuz," said the department.
At the same time, the rand depreciated from about 16.00 rand to 16.64 rand against the U.S. dollar, adding further pressure to domestic fuel prices.
To cushion consumers from the sharp increases, the authorities introduced a temporary reduction of 3 rand per liter in the general fuel levy for April, a measure expected to provide short-term relief to motorists and businesses.
The levy adjustment will remain in place for one month initially and will be reviewed thereafter, as authorities seek to balance the impact of rising transport and food inflation with fiscal sustainability concerns.
South Africa adjusts fuel prices monthly based on international oil market movements and exchange rate fluctuations, as the country relies heavily on imported crude oil and refined petroleum products.
The latest increases are expected to place additional pressure on households and transport costs, while also posing risks to inflation in Africa's most industrialized economy. ■