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Fuel prices hit record highs on Wednesday. Picture: SUPPLIED
Fuel prices hit record highs on Wednesday. Picture: SUPPLIED

Petrol will cost over R20 a litre for the first time when fuel price hikes are implemented on December 1.

Both grades of petrol will increase by 81c to bring the retail price of 95 unleaded to R20.35/l and 93-unleaded to 20.13/l in Gauteng. These are new record highs in a year that has seen a series of fuel price hikes, and it will now cost R1,017.50 to fill a 50l tank compared with R743 in January when a litre of 95 unleaded cost R14.86.

The wholesale price of diesel rises 73c/l for high-sulphur fuel and 75c/l for low-sulphur diesel, while illuminating paraffin rises 42.20c/l.

Diesel will now cost R17.92/l (high-sulphur) and R17.98/l (low-sulphur).

The hikes spell misery for motorists who are planning long trips over the holiday season.

The Central Energy Fund attributed the increases to the rising oil price and the weakened rand during the period under review.

The rand fell to R15.38 against the US dollar for the period October 28 to November 25, compared with R14.81 during the previous period. This led to a higher contribution to the basic fuel prices of petrol, diesel and illuminating paraffin by 35.34c/l, 34.44c/l and 34.11c/l respectively.

In addition the minister of mineral resources and energy has approved a net increase of 17.84c/l in the annual margin adjustments on petrol and a net increase of 8.20c/l on diesel and illuminating paraffin wholesale prices.

A slate levy of 41.66c/l — an increase of 26.3c/l — is also being implemented for petrol and diesel with effect from December 1. This is in line with the provisions of the self-adjusting slate levy mechanism, which saw the combined cumulative petrol and diesel slate balances at the end of October 2021 amounting to a negative balance of R4.689bn.

UPDATE DECEMBER 2 2021

The Department of Mineral Resources and Energy (DMRE) says it made a mistake in calculating the petrol price hike introduced on December 1 — the increase is 6c a litre lower than first announced.

The price for both grades of petrol for December increases by 75c/l instead of 81c/l announced on November 29, bringing the cost of 95 unleaded to R20.29 and 93 unleaded to R20.07.

The rest of the fuel prices are correct as originally stated.

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