Telling empowering stories, South Africans want to hear

Tuesday, 03 October 2023 12:10

Motorists in for a hefty fuel price hike from Wednesday.

By Lehlohonolo Lehana.

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

Petrol prices will be going up by R1.08 and R1.14 per litre, and diesel will be hiked by between R1.94 and R1.97 a litre

A litre of 95 unleaded petrol will now cost R25.68 in Gauteng, while the wholesale price of diesel in Gauteng will now be R25.01 a litre, a new high for 2023. In July last year, diesel reached a record high of R25.40.

Illuminating paraffin will see a R1.51 a litre increase.

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

The department said in its statement that the main reasons behind the increase were crude oil prices, which jumped from $87.78 to $91.86 in the period, refinery shutdowns in the US, global diesel shortages, and the rand's depreciation against the dollar, from R18.67 to R19. 

This led to a higher contribution to the Basic Fuel Prices (BFP) on petrol, diesel and illuminating paraffin by 24.17 c/l, 26.63 c/l and 26.59 c/l, respectively.

In terms of the Working Rules to administer the BFP, the differentials between 95 and 93 petrol grades are adjusted at the beginning of each quarter.

The BFP differentials between 95 and 93 petrol grades have changed, and therefore, the different price adjustments between the two grades.

The combined cumulative petrol and diesel Slate balances at the end of August 2023 amounted to a negative balance of R3.519 billion.

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 30.70 c/l will be implemented into the price structures of petrol and diesel with effect from 04 October 2023.