On Tuesday, Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announced that the new fuel prices, were effective from Wednesday 1 March 2023.
The prices for fuel have increased across the board for all grades of fuel, illuminating paraffin and gas.
The increases announced by the DMRE are as follows:
- Both 93 and 95 petrol will increase by R1.27
- Diesel 0.05% sulphur will go up by 30c
- Diesel 0.005% sulphur will increase by some 31c
- Wholesale illuminating paraffin will increase marginally by 13c
- The Single Maximum National Retail price for illuminating paraffin will increase by 17c
- Maximum retail price for LP Gas Retail Price will go up by R5.22
This means that, people living along the coast will now pay R22.30 a litre of 95 ULP and R22.95 per litre for inland areas.
Despite the price of Brent Crude Oil decreased slightly during the period under review, other international and national factors were contributors to the higher prices.
According to the department the increase in prices is largely due to a weaker rand and movement in international oil prices.
“The Rand depreciated, on average, against the US Dollar from R17.05 to R17.74 per USD 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 48.26 c/l, 52.53 c/l and 53.56 c/l respectively,” the department said.
Furthermore, petrol prices are increasing at a higher rate than diesel because of lower inventory levels globally and closures of refineries in some countries for seasonal maintenance.
“The impact of the EU [European Union] sanctions on diesel imports from Russia was already priced in.” the department adds.
The LPG as prices increased due to higher freight rate and Propane and Butane prices during the same period.
These factors led to higher contributions to the Basic Fuel Prices of petrol by 73.89 c/l and lower contributions to the BFP of diesel and illuminating paraffin by 26.48 c/l and 40.90 c/l, respectively.
Meanwhile, consumers are encouraged to monitor their fuel usage throughout the month, and to budget according to the new fuel prices.
Some of ways motorists can ensure better fuel consumption include, ensuring that their vehicles are well maintained, are in good mechanical condition, carefully planning routes, and avoiding heavy traffic where possible.
