The Department of Mineral Resources and Energy (DMRE) has confirmed that the price of all types of fuel will increase on 7 February 2024. This includes substantial increases in the prices of both grades of petrol as well as the price diesel.
Motorists will now pay 75c more for a litre of unleaded petrol of both grades of petrol while the wholesale price of diesel will go up by between 70c and 73c. The wholesale price of illuminating paraffin will be increased by 53c a litre and the maximum retail price for LP gas is going up by 37c per kg.
Fuel Price Adjustments For February 2024
- Petrol 93 increased by 75 cents per litre
- Petrol 95 increased by 75 cents per litre
- Diesel 0.05% increased by 73 cents per litre
- Diesel 0.005% increased by 70 cents per litre
- Illuminating Paraffin increased by 53 cents per litre
- LPGAS increased by 37 cents per kg
Several factors contributed to the fuel price increases in February. Factors include changes in crude oil prices, the Rand/US Dollar exchange rate, and the implementation of the Slate Levy.
During the period of review, the average Brent Crude oil price surged from $77.35 to $82.03 per barrel in the previous month, impacting fuel prices directly.
Attacks on oil cargoes in the Middle East, particularly in the Red Sea region, increased geopolitical risks, leading to higher oil prices and shipping rates. Ships rerouted from the Middle East to Europe via the longer and costlier route around Africa due to import disruptions from Russia.
This has caused an increase in shipping rates as ships are rerouted from the Middle East to Europe, using the longer and more expensive route around Africa since they cannot import from Russia.
Cold weather conditions affected oil production in the United States, which is crucial for offsetting production cuts by OPEC+ nations. This resulted in more significant inventory draws than expected.
The average international product prices of petrol, diesel and illuminating paraffin increased in line with the higher crude oil prices, while the rand/US dollar exchange rate played a role.
The DMRE also confirmed that the cumulative slate balance on petrol and diesel at the end of December 2023 had a positive balance of R1.1 million. The department therefore confirmed that no slate levy was implemented in the price structures of petrol and diesel with effect from 7 February 2024.
These changes in fuel prices have a direct impact on the cost of living for all South Africans, not just motorists. It remains important to monitor these developments, especially as they relate to inflation and financial pressures facing many citizens.
