ANOTHER BIG FUEL PRICE RISE
AS EXPECTED, South African motorists face another significant petrol and diesel price increase from tomorrow.
The Department of Mineral Resources Energy (DMRE) yesterday confirmed the price of both grades of petrol would rise by R1.21/l, while diesel was set to increase by between R1.06 (500ppm) and R1.19 (50ppm).
The increases follow a rise in fuel prices last month, in which 93ULP and 95ULP petrol climbed by between 64c/l and 66c/l respectively, while diesel increased by around 63c/l.
Following tomorrow’s price hikes, a litre of 95 unleaded would cost R23.73 at the coast and R24.45 in the inland regions, while 93 unleaded would rise to R24.13.
The wholesale price of 50ppm diesel would increase to R21.91 at the coast and R22.62 inland, while unregulated retail prices would be at least R2 higher.
The cost of filling up a small hatchback with 30 litres of petrol would increase by around R36 from tomorrow, while a 50 litre refuel in a medium car or SUV will set motorists back an additional R60.50. Putting 70 litres of diesel into a bakkie or large SUV would cost between R74 and R83.
The Automobile Association (AA) said the main driver behind the increases was higher international product prices in addition to the higher average rand/US dollar exchange rate.
“While the weaker rand is contributing a small margin to the under-recovery expected next month, the overall picture still looks bleak and consumers will feel the pinch,” said the AA.
Higher international oil prices added around R1 to the over-recovery recorded last month.
These higher product prices reportedly come as a result of the Middle East conflict and Opec production cuts.
Motorists were advised not to expect any relief on the horizon as an expert predicted tighter supplies would be a reality for the remainder of the year.
Dennis Kissler, a senior trader at BOK Financial told Reuters that OPEC was aiming to push Brent Crude oil prices to around $85 (R1 617) per barrel. Oil traded between $82 (R1 560) and $84 (R1 598) for much of February.
High taxes continued to weigh down local fuel prices, with the General Fuel Levy and Road Accident Fund levy collectively adding R6.13 to every litre of fuel in South Africa.
The Department of Mineral Resources and Energy (DMRE) noted the decommissioned Kroonstad pipeline by Transnet Pipelines also had an impact on the fuel adjustment.
“This has affected the 4 Magisterial District Zones (MDZ).
“In line with the Ministerial approval, the transport tariffs adjustments that are applicable to petrol and diesel price structures will range from a decrease of 5.7c/l (8C) to an increase of 0.9c/l (10C). As a result, the different transport tariff adjustments for the 4 MDZ will be implemented with effect from the 6th of March 2024,” the department said.
“The Minister of Mineral Resources and Energy, with the concurrence Minister of Finance, approved an increase from 0. c/l to 1.0c/l in the IP Tracer Dye Levy that is applicable to Diesel with effect from March 6, 2024.
“This increase is temporary until the 5th of March 2025. The IP Tracer Dye levy will decrease to 0.5c/l thereafter,” the DMRE said.