South Africa

Massive hike in petrol and diesel prices from Wednesday

Petrol and diesel price increase 1

The Department of Mineral Resources blamed higher oil prices and a weaker rand for the steep fuel price increases.

South African motorists will have to dig deeper into their pockets with a hike in the petrol and diesel price coming on Wednesday.

The Department of Mineral Resources and Energy (DMRE) has announced the price of both 93 and 95 octane petrol will increase from Wednesday, 6 March 2024.

Both 93 and 95 octane petrol will increase by R1.21 per litre.

The price of diesel (0.05% sulphur) increases by R1.06 per litre, while diesel with 0.005% sulphur increases by R1.19 per litre.

Meanwhile, illuminating paraffin will cost 85 cents per litre more and the price of LPGas increases by 41 cents per kilogramme.

Reason for petrol increase

DMRE spokesperson Robert Maake said there were several factors that contributed to the decreases in petrol and diesel prices.

“The higher average oil prices and weaker rand against the US Dollar during the period under review.”

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Brent Crude price

The DMRE said the average Brent Crude oil price increased from 82.03 US Dollars (USD) to 82.50 USD during the period under review.

“The higher oil price is be attributed to, the continued OPEC+ oil production cuts and the extremely cold weather which affected production from North America, and the continued tension in the Red Sea, which added to the geopolitical risk premium on the shipping costs.”

International petroleum prices

The Rand depreciated slightly on average, against the US Dollar (from 18.77 to 19.20 Rand per USD) during the period under review when compared to the previous one.

“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 17.71 c/l, 18.74 c/l and 18.53 c/l, respectively,” the department said.

Slate levy

Maake said the cumulative slate balance on petrol and diesel at the end of January 2024 had a positive balance of R239 million.

“Therefore, a slate levy of zero c/l will be implemented in the price structure of petrol and diesel with effect from the 6th of March 2024.”

“The minister, with the concurrence of the minister of finance, increased the IP tracer dye levy from 0.1 cents to one cent in the price structures of diesel.

“Transnet pipeline has decommissioned the Kroonstad pipeline from 31 December 2023. This has affected the 4 Magisterial District Zones (MDZ) which are 8C, 9C, 10C and 11C.

“In line with the Ministerial approval, the transport tariffs adjustments that are applicable to petrol and diesel price structures will range from a decrease of 5.7 c/l (8C) to an increase of 0.9 c/l (10C). As a result, the different transport tariff adjustments for the 4 MDZ will be implemented with effect from the 6th of March 2024,” Maake said.

South Africa’s fuel prices are adjusted monthly, informed by international and local factors.

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