May fuel prices are pushed higher by a slate levy of almost R1.32 a litre on petrol and diesel, which will take effect on Wednesday.

• For more financial news, visit News24 Business.

Wholesale diesel prices will rise by R6.19 a litre on Wednesday, despite increased fuel levy relief.

Petrol (93 and 95 unleaded) will increase by R3.27 a litre, the Department of Mineral and Petroleum Resources announced on Monday.

The Iran war has pushed fuel prices higher, with the average Brent crude oil price increasing from $93.67 a barrel to $101 over the past month. The closure of the Strait of Hormuz and damage to key infrastructure are throttling fuel supplies.

The department said diesel and paraffin prices had risen more than petrol prices because of higher demand and reduced supply from the Persian Gulf.

READ | EXPLAINER | Why the diesel price is skyrocketing – more than oil, petrol

May fuel prices are also pushed higher by a slate levy of almost R1.32 a litre on petrol and diesel, which will take effect on Wednesday.

The slate account is used to pay fuel importers for the difference between the regulated fuel price they are allowed to charge and the actual price they pay to import or manufacture fuel during that month, which varies daily on international markets and is also affected by the fluctuating rand-dollar exchange rate. A slate levy must be paid when the account is more than R500 million in the red.

READ | Fuel price and inflation surge: Will your salary increase keep you afloat?

The slate levy eroded the impact of fuel levy relief this month, which Treasury has extended since introducing it in April.

Diesel fuel levy relief has been increased by 93 cents to R3.93 per litre, effectively reducing the diesel fuel levy to zero this month. The levy relief was maintained at R3 for petrol.

The government plans to halve the levy relief in June, before it is phased out and restored to pre-war levels in July.

Wholesale prices of illuminating paraffin will increase by R4.22, while the maximum retail price of LP Gas will increase by R5.07 per kg in Gauteng and R5.78 in the Western Cape.