Hefty petrol and diesel increases from Wednesday: Here’s how much more you’ll pay
International petrol prices and a weaker rand led to the fuel increases.
The Department of Mineral Resources and Energy (DMRE) has announced the price of both 93 and 95 octane petrol will increase from Wednesday, 6 September 2023.
Both 93 and 95 octane petrol will increase by R1.71 per litre.
The price of diesel (0.05% sulphur) increases by R2.84 per litre, while diesel with 0.005% sulphur increases by R2.76 per litre.
Meanwhile, illuminating paraffin will cost R2.78 per litre more, while the price of LPGas increases by R2.26 per kilogramme.
Reason for petrol increase
DMRE spokesperson Robert Maake said there were several international and local factors that contributed to the increases in petrol and diesel prices.
Brent Crude price
The average Brent Crude oil price increased from $79.75 to $84.78 during the period under review, because of production cuts by Saudi Arabia.
International petroleum prices
“The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to high prices of petrol as a result of low inventories and refinery outages, which affected the production of blending components used in summer grade petrol making it more expensive to produce.
“Diesel and paraffin prices increased because of lower shipments of Russia’s Urals crude oil which is rich in middle distillates, as well as rising demand of middle distillates ahead of the winter season in the northern hemisphere. LPGas increased because of higher prices of propane and butane,” the department said.
Rand/dollar exchange rate
The department said the rand also depreciated on average, against the US dollar (from 18.28 to 18.67 rand per dollar) 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 29.60 c/l, 31.33 c/l and 31.58 c/l, respectively.”
The department said the cumulative slate balance on petrol and diesel at the end of July 2023 was positive at R1.3 million.
“Therefore, there is no slate levy applicable in the petrol and diesel price structure for September 2023.”
Minister of Mineral Resources and Energy Gwede Mantashe also approved a 5.0 c/l increase in the price structures of petrol to accommodate the wage increase for forecourt employees in line with the Motor Industry Bargaining Council (MIBCO) agreement.
“This increase will be implemented from 6 September 2023.”