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Massive petrol and diesel increases from Wednesday: Here’s how much more you’ll pay
There were several international and local factors that contributed to the increases in petrol and diesel prices
Photo: Neil McCartney
The Department of Mineral Resources and Energy (DMRE) has announced the price of both 93 and 95 octane petrol will increase from Wednesday, 4 October 2023.
The department’s spokesperson Robert Maake said 93 octane will increase by R1.08 per litre to R25.22 and 95 octane petrol will increase by R1.14 per litre to R25.68
The price of diesel (0.05% sulphur) increases by R1.96 per litre to R25.01 while diesel with 0.005% sulphur increases by R1.93 per litre to R25.22.
Meanwhile, illuminating paraffin will cost R1.51 per litre more, while the price of LPGas increases by R2.50 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.
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Brent Crude oil
Maake said the average Brent Crude oil price increased from 84.78 US Dollars (USD) to 91.86 USD during the period under review mainly due to the continuing tightening of supply that emanated from extended production cuts by Saudi Arabia and Russia and low global oil inventories.
International petroleum prices
Maake said the average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to high prices of petrol are because of refinery shutdowns in the United State of America.
“The increase was due to higher oil prices during the period under review, which led to higher prices of petroleum products. There is a shortage of diesel in the market globally,” Maake added.
Rand/dollar exchange rate
Maake said the Rand depreciated on average, against the US Dollar (from 18.67 to 19.00 Rand per USD) during the period under review when compared to the previous one.
“The rand weakened against the US Dollar and contributed around 22 to 26 cents per litre.”
Slate levy
Maake added a slate levy of around 30.7 cents per litre is implemented on the price structures of petrol and diesel in line with the self-adjusting slate mechanism rules with effect from the 4th of October.
“The LP gas is increasing mainly due to higher prices of Propane and Butane, as well as a higher freight rate during the period under review,” Maake said.
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