Motorists face higher costs at the pumps from midnight on Tuesday as both petrol and diesel prices increase, amid growing concerns that escalating hostilities in the Middle East could push fuel costs even higher in the months ahead.
Brent crude averaged $69.08 during the review period, up from $64.08 previously. The increase was largely driven by elevated shipping costs and heightened geopolitical instability stemming from tensions involving Iran, the US and Israel, which have raised the prospect of disruption to the strategically vital Strait of Hormuz — a waterway through which approximately 20% of the world's oil supply is transported.
The situation deteriorated sharply over the weekend when the US and Israel launched a full-scale military offensive against Iran, resulting in the death of Iranian Supreme Leader Ayatollah Ali Khamenei, among other consequences.
According to the Department of Mineral and Petroleum Resources, international product prices have trended upward, translating into a higher basic fuel price domestically. The rand did, however, offer some marginal relief by strengthening slightly against the US dollar during the same period.
Meanwhile, the slate levy fund recorded a positive balance of R5.9 billion for both petrol and diesel at the close of January, with no adjustments to the levy at this stage.
