Record jump in diesel price bad for ICT sector

The price of diesel will rise by a record R2.84/l on Wednesday, raising the spectre of a fresh round of inflationary pressures.

The jump in the price of the fuel is also bad news for South Africa’s ICT sector, with companies, including telecommunications operators, relying heavily on it to power generators to keep base stations and data centres operational during load shedding.

The department of mineral resources & energy announced on Monday that from this Wednesday, 93 and 95 unleaded petrol will increase by R1.71/l.

Diesel prices will rise for the third time this year, with increases of between R2.76 and R2.84/l.

Mineral resources & energy minister Gwede Mantashe said a big reason for the fuel price adjustments was that the price of Brent crude oil had increased from US$79.75 to $84.78/barrel.

Also, diesel and paraffin prices increased because of lower shipments of crude from Russia and rising demand ahead of the winter season in the northern hemisphere.

The rand depreciated on average against the US dollar (from R18.28 to R18.67/$), too, while a 5c/l increase in the price structure of petrol to accommodate a wage increase for forecourt employees was approved.

The record increase in the price of diesel will impact inflation and any of those businesses trying to stay afloat by using generators to offset load shedding, including power-hungry data centres.  – © 2023 NewsCentral Media

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