Fuel price increase and temporary shortages

Petrol Prices in SA have increased significantly since this morning.  The Dept of Mineral Resources and Energy announced a hike of R3,06 per litre for petrol and diesel rising by over R7 per litre due to global oil price hikes and rand weakness.

The price hike follows rising oil prices driven by severe conflict in the Middle East, while National Treasury intervened by implementing a temporary R3,00 per litre cut to the fuel levy, to curb the record-high increase.  Despite the levy relief, additional tax increases for the General fuel Levy, Road    Accident Fund, and Carbon Tax are included.  Government is exploring  further temporary relief measures due to the severe impact on consumers.

Petrol is currently selling at around R23,81 and Diesel at around R28,00.

And NO there is NO fuel shortage in South Africa, but panic buying and  logistical challenges (like pipeline constraints such as delays in feeding the Transnet New Multi-Product Pipeline) have caused temporary shortages at some local petrol stations.  The government reports that fuel supplies     remain stable, with imports secured to meet demand.  South Africa has some protection from fears about global supply disruptions, because its crude oil is largely sourced from Africa and the Atlantic basin rather than the Middle East.  We are however not spared from the increase in the oil price, as it is traded as a commodity.

Hundreds of fuel stations have run out of petrol and diesel as demand surged in the final 24 hours before the expected increases took effect.