Petrol and diesel prices to increase from Wednesday

With no reprieve from the South African Reserve Bank (SARB) on interest rates, South African motorists will have to dig deep into their pockets with another hike in the petrol and diesel price from Wednesday.

The Department of Mineral Resources and Energy (DMRE) announced the price of both 93 and 95 octane petrol will increase from Wednesday, 3 April 2024.

Fuel prices

The department’s spokesperson Robert Maake said 93 octane petrol will increase by 65 cents per litre and 95 octane will increase by 67 cents per litre.

The price of diesel (0.05% sulphur) increases by 3.2 cents per litre while diesel with 0.005% sulphur decreases by 1.78 cents per litre.

Meanwhile, illuminating paraffin will cost 29 cents per litre less, while the price of LP Gas decreases by 19 cents per kilogramme.

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Reasons for petrol price increase

The DMRE said several international and local factors contributed to the increase in petrol and diesel prices.

Brent Crude price

It said the average Brent Crude oil price increased from 82.50 US Dollars (USD) to 84.22 USD per barrel, during the period under review.

“There was a lot of volatility in the market this period. The main contributing factors is the continued OPEC+ production cuts and the attacks on the Russian refineries by Ukraine, which could pose a supply risk.”

International petroleum prices

The department said the average international product prices of petrol increased following the higher Brent Crude oil prices.

“The diesel, illuminating paraffin and LP Gas prices decreased on average due to seasonal changes in the  northern hemispheres as they move away from their winter season.

Rand/US dollar exchange rate

The department said the rand appreciated, on average, against the US dollar (from 19.20 to 18.04 rand per dollar) during the period under review when compared to the previous one.

“This led to lower contributions to the basic fuel prices of all products by over 10 cents per litre.”

Fuel and other levies

The department said Minister of Finance Enoch Godongwana in his budget speech on in February announced that the fuel levy and Road Accident Fund (RAF) levy on both petrol and diesel will remain unchanged, with effect from 3 April 2024.

“However,  the carbon fuel levy increased by 1.00 c/l on both petrol and diesel. Thus, the fuel  levy on petrol and diesel will increase to 396 c/l and 384 c/l, respectively.”

Slate levy

“As at the end of February 2024, the cumulative slate amounted to a negative balance for petrol and diesel of R 2.65 billion.

“In line with the provisions of the self adjusting slate levy mechanism, a slate levy of 21.92 c/l will be implemented into the price structures of petrol and diesel with effect from the 3rd of April 2024,” the department said.

Revised road and pipeline transport tariffs

The department said the Minister of Mineral Resources and Energy Gwede Mantashe has approved the annual  adjustments to road transport tariffs applicable in petrol, diesel and IP price structures and will range from an increase of 14.8c/l to 7.3 c/l.

“The primary transport tariffs applicable to the  transport of petrol and diesel by means of the pipeline network and road network has increased. As a result of the different transport tariff adjustments to be implemented on 3 April 2024, price changes to similar products will  differ in the 54 Magisterial District Pricing Zone,” the department said.

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