The Department of Mineral Resources and Energy recently published the official petrol and diesel price changes for September, with both grades of petrol set to increase by R1.71 per litre, while diesel will go up by between R2.76 and R2.84 a litre.
What this means at the pumps is that a litre of 95 Unleaded petrol will now cost you R23.82 per litre at the coast and R24.54 in the inland regions, where 93 Unleaded now rises to R24.14 in the inland regions and R23.42 along the coast.
Fuel Price Adjustments For September 2023
The adjusted prices for all fuel types and gas are as follows:
- Both 95 and 93 petrol are expected to go up by R1.71.
- Diesel 0.05% sulphur will increase by R2.84.
- Diesel 0.005% sulphur will go up by R2.76.
- The price of wholesale illuminating paraffin will go up by R2.78
- Single Maximum National Retail Price for illuminating paraffin is set to increase by R3.70.
- Maximum Retail Price of LPGas is expected to rise by R2.26.
Reasons for petrol increase
The Department of Mineral Resources and Energy (DMRE) explained that several factors contributed to an increase in the price of fuel in September, including the increase in the price of Brent Crude Oil.
High prices of petrol are 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.
The DMRE continued, “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.”
During the latest review the rand depreciated against the US Dollar, on average, when compared to the previous period.
The average Rand/US Dollar exchange rate for the period 28 July 2023 to 31 August 2023 was 18.6731 compared to 18.2801 during the previous period. This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 29.60 c/l, 31.33 c/l and 31.58 c/l, respectively.
Impact on ALL consumers
Meanwhile, the Automobile Association has warned that the fuel price increases will have negative consequences for all consumers, not just motorists, as the higher transportation costs will inevitably filter their way through to general inflation.
The association explained:
Motorists will certainly feel the pinch in terms of higher prices at the pumps but consumers across the board can expect higher prices to all goods and services because of these hikes.
Furthermore, there was no Slate Levy contribution to September’s pricing structure, however the DMRE did approve a five cent per litre increase to accommodate wage increases for fuel station employees.
This increase is necessary to accommodate the wage increases of pump attendants, cashiers and administrative staff at service stations.
