Record fuel price hike: Remember to fill up your tank before midnight

Don’t shoot the messenger – this is just a friendly reminder of tomorrow’s massive fuel price increase, which will take SA’s fuel prices to record highs.

As per Mineral Resources and Energy (DMRE) Minister Gwede Mantashe, the adjustment is based on local and international factors. 

The escalating crisis between Russia and Ukraine led to a surge in crude oil prices amid supply fears.  

March fuel price increase

The implementation of the Self-Adjusting Slate Mechanism rules – effective from 2 March 2022 – and the Rand/US Dollar exchange rate also impacts the South African fuel price.   

“The combined cumulative Slate balances of petrol and diesel amounted to a negative R5.102 billion at the end of January 2022”, the DMRE said in a statement.  

The Rand appreciated slightly, on average, against the US Dollar (from 15.51 to 15.23) Rand per USD during the period under review when compared to the previous one.  

This, in turn, led to lower contributions to the Basic Fuel Prices of petrol.  

This is what you’ll pay:

The fuel prices for March will be adjusted as follows:  

• The price of petrol (both 93 and 95 ULP & LRP) will increase by R1.46/l,
• Diesel (0.05% sulphur) will increase by R1.44/l,
• Diesel (0.005% sulphur) will increase by R1.48/l,
• Iluminating paraffin (wholesale) by R1.21/l,
• Maximum LPGas retail price by 70 cents/kg.

Crude oil prices

Meanwhile, the subsequent sanctions on Russia by the USA and UK have contributed to the increase in crude oil prices. 

On Monday, Brent oil prices ended above $100 per barrel. Goldman analysts predict the price will eventually reach $115 a barrel.  

Approximately 4 million barrels will be needed to offset the loss of Russian exports. At the time of publishing, the price per barrel was $101.45. 

“The Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC members are still not meeting production targets agreed leading to lower supplies of crude oil and an increase in prices,” the DMRE said.  

Russia-Ukraine update

On Tuesday, a Russian military convoy approached Ukraine’s capital Kyiv.  

Satellite images showed a long build-up of armoured vehicles and artillery heading to the capital as Moscow defied mounting global pressure.

The Russian army regrouped and massed its forces over the past 24 hours “primarily to encircle and take control of Kyiv and other major cities,” the general staff of Ukraine’s armed forces said.

READ MORE HERE: Gunning for Kyiv: Russian invasion convoy masses near Ukraine capital