Record increases in fuel price from midnight
The fuel price will be going up again at midnight tonight and a tank of fuel will now cost from R90 to R180 more thanks to the highest increase in the price of petrol since July 2022, and a record hike in the diesel price.
Various factors contributed to an increase of R1,71 per litre of petrol and R2,84 per litre of diesel (50ppm). The average price of Brent crude oil increased from $79,75 to $84,78 per barrel, due to production costs by Saudi Arabia. This contributed to more than 80% of the increase. Although the dollar-rand exchange rate has not done the consumer any favours, this has a small effect on the price increase. The average price of the US dollar was R18,28 in July and that slipped down to R18,67.
There will be no slate levy in the fuel price composition for September due to a positive balance of R1,3 million in the cumulative slate balance. However, Minister of Mineral Resources and Energy, Gwede Mantashe, did approve an increase of five cents per litre in the price structure of petrol and diesel to accommodate a wage increase for forecourt employees, in line with an agreement with the Motor Industry Bargaining Council.
In a press release forecasting these increases last week, the Automobile Association said the increase in the petrol price will be the biggest since July 2022.
“The new petrol price is in line with prices last seen in August 2022, but not at the record highs seen July 2022. In the case of diesel, this is a record increase, and this will push the suggested wholesale price to the highest it has been since December 2022,” the AA said.
The Association says the increases to the fuel prices – especially to diesel – will have negative consequences for all consumers as higher input costs will be recovered through higher prices at the till.
“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. In this environment we reiterate our advice to motorists that they should keep their vehicles in good mechanical condition and their tyres inflated according to manufacturer’s specifications to ensure optimal fuel use.”
The official increases are:
- Petrol – R1,71 per litre
- Diesel 50ppm – R2,84
- Diesel 500ppm – R2,76
- Paraffin – R2,78 wholesale price and a maximum of R3,70 in retail price
- LP gas – maximum of R2,26 per kg in retail (R20,34 on a 9kg bottle)
The Single Maximum National Retail Price for illuminating paraffin for the period 6 September 2023 to 3 October 2023 will be R22,61 compared to R18,91 per litre for the period 2 August 2023 to 5 September 2023.
