The Ministry of Mines and Energy on Monday announced a huge fuel price increase for the month of March, with petrol increasing by N$1.20/litre and diesel by N$1.30/litre effective Wednesday, 2 March,2022.
The price increase will bring the fuel price for Walvis Bay to N$17.15/litre for petrol and N$17.28/litre for diesel.
The Government, through the National Energy Fund (NEF) will pay over N$143 Million for under recoveries recorded.
The announcement by the ministry comes as Simonis Storm had forecasted a price hike in March, citing a weakening Rand and rising global oil prices.
“Both petrol and diesel prices have increased by about 45% in the last twelve months. In the last twelve months, MME incurred a net under-recovery of N$10.48 on petrol and N$6.72 on diesel. This implies that petrol and diesel prices should have increased to N$22.33 and N$18.60 respectively. With the objective of providing some financial relief to consumers, fuel pump prices have not reached these levels owing to the NEF,” Simonis Storm Economist Theo Klein said.
The Monday increase comes as the Ministry in February announced a 30-cent increase in the price of petrol and 40 cents for diesel.
Meanwhile as from the 2nd of March 2022, South Africa’s price of petrol (both 93 and 95 ULP & LRP) will increase by R1.46/l, that of diesel (0.05% sulphur) by R1.44/l, diesel (0.005% sulphur) by R1.48/l, illuminating paraffin (wholesale) by R1.21/l, and the maximum LPGas retail price by 70 cents/kg.
South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe on Saturday cited rising crude oil prices amidst escalating fears created by the conflict in Ukraine for the increase.
Global oil prices surged past US$100 a barrel for the first time since 2014 on Thursday after Russian President Vladimir Putin ordered a full-scale military assault on Ukraine.
Oil prices on Monday jumped as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.
Brent gained 4.78% to trade at US$102.61 per barrel
