Fuel increases due to rising international oil prices: Economists

A man holds a fuel nozzle at a petrol station

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Economists have attributed the increase in fuel prices to the rising international oil prices.

For the first time in six months, the Minerals and Energy Department has announced an increase in fuel prices.

With effect from midnight tonight, the price of both 93 and 95 unleaded petrol will increase by 25 cents per litre.

The prices of diesel will be up by 20 and 21 cents per litre, while illuminating paraffin will increase by 28 cents a litre.

The department’s Robert Maake says a stronger rand has cushioned the blow of the increase in fuel prices.

“The only thing that has changed is the oil price. It’s higher than the previous month on average and this was mainly due to what happened between Israel and Iran. Iran attacked Israel, Israel retaliated, and people thought that when Israel retaliates, they’ll hit the energy infrastructure in Iran but that was not the case. Unfortunately, the market was expecting an increase in the oil price, so we saw oil prices going up by about 77 US dollars per barrel, but it has since gone down. Unfortunately, on average it was still higher than the previous month.”