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Monday, 04 September 2023 14:20

Massive petrol, diesel price hikes confirmed for Wednesday.

By Lehlohonolo Lehana.

The Department of Mineral Resources and Energy (DRME) has published the official petrol and diesel price changes for September.

Both 93 and 95 octane petrol will increase by R1.71 per litre, with the price of diesel (0.05% sulphur) increases by R2.84 per litre, while diesel with 0.005% sulphur increases by R2.76 per litre.

Illuminating paraffin prices will be hiked by R2.78 a litre.

A litre of 95 unleaded petrol will now cost R24.54 in Gauteng, the highest level since August 2022. Meanwhile, the wholesale price of diesel in Gauteng will now be R23.05 a litre, a new high for 2023. In July last year, diesel reached a record high of R25.40.

South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.

In a statement, the department said the average Brent crude oil price increased from $79.75 a barrel to $84.78 over the past month due to production cuts by Saudi Arabia.

"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.

"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," the department said.

The average level of the rand-dollar exchange rate declined from R18.28 to R18.67 over the past month.

The department said the cumulative slate balance on petrol and diesel at the end of July 2023 had a positive balance of is R1.3 million.

"Therefore, there is no slate levy applicable in the petrol and diesel price structure for September 2023." This increases will be implemented from 6 September 2023.