Gwede Mantashe, the Minister of Mineral Resources and Energy, officially announced the impending adjustments to fuel prices in South Africa, set to come into effect on Wednesday, 6 September 2023.
These adjustments have been determined by considering a range of current local and international factors that influence fuel pricing.
According to Minister Mantashe, the upcoming fuel price adjustments will be as follows:
- Petrol (both 93 and 95 Octane): Motorists should brace themselves for an increase of R1.71 per litre.
- Diesel (0.05% sulphur): The price of this type of diesel will surge by R2.84 per litre.
- Diesel (0.005% sulphur): An increase of R2.76 per litre is on the horizon.
- Illuminating Paraffin (wholesale): Consumers of illuminating paraffin will witness a price hike of R2.78 per litre.
- Maximum Retail Price of LPGas: LPGas users will be faced with an increase of R2.26 per kilogram.
The Department of Mineral Resources and Energy emphasised that South Africa regularly adjusts fuel prices on a monthly basis. These adjustments are informed by a combination of international and local factors. On the international front, South Africa’s fuel prices are significantly influenced by the cost of importing both crude oil and finished products. These are determined at a global level, encompassing various importation costs like shipping.
The primary drivers behind the forthcoming fuel price adjustments are as follows:
- Crude oil prices: During the review period, the average Brent Crude oil price surged from 79.75 US Dollars (USD) to 84.78 USD. This increase was attributed to reduced supply resulting from production cuts by Saudi Arabia.
- International petroleum product prices: Average international prices for petrol, diesel, illuminating paraffin, and LPGas all rose during the review period. Petrol prices increased due to low inventories and refinery outages, impacting the production of blending components used in summer grade petrol. Diesel and paraffin prices saw an upswing due to lower shipments of Russia’s Urals crude oil, which is rich in middle distillates, and increased demand for middle distillates ahead of the Northern Hemisphere’s winter season. LPGas prices rose due to higher costs of Propane and Butane.
These factors collectively contributed to higher Basic Fuel Prices for petrol, diesel, and illuminating paraffin, with increases of 135.41 c/l, 253.42 c/l, and 247.13 c/l, respectively.
- Rand/US Dollar exchange rate: The Rand, on average, depreciated against the US Dollar during the review period, going from 18.28 to 18.67 Rand per USD. This depreciation resulted in higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin, increasing by 29.60 c/l, 31.33 c/l, and 31.58 c/l, respectively.
- Implementation of the Slate Levy: At the end of July 2023, the cumulative slate balance on petrol and diesel stood at a positive balance of R1.3 million. Consequently, no slate levy will be applied to the petrol and diesel price structure for September 2023.
Annual Wages Adjustment for Forecourt Staff: In line with the Motor Industry Bargaining Council (MIBCO) Agreement, the Minister of Mineral Resources and Energy approved a 5.0 c/l increase in the price structures of petrol to accommodate the wage increase for Forecourt employees. This adjustment will be implemented from 6 September 2023.
As these fuel price adjustments bear significance for South African consumers, we invite Newcastillians to share their perspectives and opinions in the comment section below.
3 Responses
Wow. Is Ramaphosa the worst president we have had? High food costs, fuel costs, murder rate like a war zone, etc. And no protection for the poor.
How much longer can the person in the street survive this total onslaught.
Do we all need to move to Phala Phala and dine amongst the rich?
Good Day, Nobody is above the Labour Law. Why hasn’t the ANC Government and Municipalities which have failed the citizens of South Africa not been charged at the CCMA for being incompetent to serve the South African citizen. That why the Labour Law has been implemented. Where employee or employer have failed to do the work they are paid for. The solution to South African political problems are to be addressed with CCMA and the DA which is the strongest opposition party must take over the responsibilities. We don’t have to wait for votes which are rigged. We require proper service’s . Within civil manner all the failing ANC GOVERNMENT SECTION AND MUNICIPALITIES NEED TO BE ADDRESSED UNDER THE LABOUR LAW WHICH NEEDS TO BE IMPLEMENTED. FULL STOP
The fuel prices are out of hand now surely there is a way to reduce the prices get rid of all the extras added to the fuel price