MOTORISTS will once again feel the pinch as petrol and diesel prices go up effective from tomorrow (March 6).
The Minister of Mineral Resources and Energy, Gwede Mantashe, confirmed on Monday that the price of petrol will go up by R1.21 per litre and diesel by R1.06 and R1.19 per litre. Mantashe announced the adjustment of fuel prices based on current local and international factors.
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South Africa’s fuel prices are adjusted monthly, informed by international and local factors.
International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs such as shipping costs.
The Department of Minerals and Energy said the main reasons for the fuel price adjustments are due to the average Brent Crude Oil price increase from US$82.03 to US$82.50 during the period under review.
The average international product prices of petrol, diesel and illuminating paraffin increased in line with the higher crude oil prices. Liquified petroleum gas (LPG) prices increased due to higher freight costs and a weaker rand.
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These factors led to higher contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 102.82 cents a litre, 102.76 c/l and 47.42 c/l, respectively.
The rand depreciated slightly on average, against the US dollar (from R18.77 to R19.20 per USD) during the period under review when compared to the previous one.
In line with the ministerial approval, the Transnet pipelines 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 tomorrow.
The average rand / US dollar exchange rate for the period of February 2 to February 29 was 19.0186 compared to 18.7655 during the previous period.
This led to a higher contribution 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.
In line with the provisions of the self-adjusting Slate Levy Mechanism, the Slate Levy on petrol and diesel will remain at 0.00 c/l with effect from tomorrow (March 6).
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