Consumers will pay R1.18/l more for both grades of petrol from Wednesday, 3 June.
This is in line with estimates from the Automobile Association. But the price of petrol is still on average R2 lower than it was at the beginning of lockdown.
Fuel prices are increasing across the board, according to a statement from the Department of Mineral resources and energy, issued on Monday.
Petrol (both 93 ULP and LRP): 118c/lPetrol (both 95 ULP and LRP): 118c/lDiesel (0.05% sulphur): 22c/lDiesel (0.005% sulphur): 21c/lIlluminating Paraffin (wholesale): 40c/lSMNRP for IP: 54c/lMaximum LPGas Retail Price: 198c/kg
"The main reason for the higher oil prices is that OPEC, Russia and other oil producing nations agreed to reduce oil production by about 10 million barrels per day during a meeting in April 2020. This effectively removed about 10% of global supply of oil," the department said.
The average price for Brent Crude oil also increased from $20/bbl to about $27.63/bbl.
The increases were also partly driven by the strengthening of the rand, which led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by over 6c/l, the department said.
The prices of petroleum products also increased, which influenced the decision to hike fuel prices domestically. "The demand for refined products also increased as the easing of lockdown started in the US and other countries," the department said.