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Petrol price changes tomorrow thanks to Middle East turmoil

  • The Department of Mineral Resources and Energy has said that all forms of fuels will see a price increase from Wednesday 7th February 2024.
  • Both grades of petrol and diesel will see hikes of more than 70 cents per litre.
  • The DMRE says higher international Brent Crude prices were the result of recent conflict in the Middle East.

South African motorists have enjoyed a slightly reduced price for petrol and other fuels from December. At the end of 2023, both grades of petrol, diesel and other fuels saw decreases in pricing across the board.

Now the second change to fuel prices in 2024 is undoing those decreases with a wide-ranging hike. According to the Minister of Mineral Resources and Energy, Gwede Mantashe, the price for fuel like petrol, diesel, paraffin and liquid petroleum gas are all set for increases. These changes are taking effect from Wednesday 7th February, so Tuesday 6th is the final day to enjoy the lower charges.

Here is the new price for petrol, diesel and other coming into effect from Wednesday this week:

  • Both grades of petrol 93 and 95 – increase of 75 cents per litre,
  • Diesel 0.05 percent – increase of 73 cents per litre,
  • Diesel 0.005 percent – increase of 70 cents per litre,
  • Illuminating paraffin – increase of 53 cents per litre,
  • LP gas – increase of 37 cents per litre.

The Department of Mineral Resources and Energy (DMRE) has said in a statement that the country’s fuel prices are adjusted on a monthly basis and informed by both international and local factors. These “include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.”

Increases in the international price of Brent Crude oil have also led to increases in local fuel prices. In particular, Crude Oil jumped from $77.35 to $82.03 from January to February. These prices are due to the impact of the recent attacks on oil cargo ships in the Red Sea, stemming from a wider escalating conflict in the Middle East. Ships are now being rerouted to a safer, but longer route, increasing costs.

Further impacts were felt from cold weather affecting crude oil production in the US which has recently been part of the output used to offset the production cuts by OPEC+.

The average international product prices of petrol, diesel and illuminating paraffin all increased along with the crude oil prices.

Finally, an unfavourable Rand to US Dollar exchange rate also impacts local fuel prices because South Africa purchases fuel using the foreign currency. The Rand depreciated against the Dollar in the period (from 18.66 to 18.77 Rand per USD), thus leading to the wide-ranging hikes.

The DMRE says that the Slate Levy did not affect February’s petrol and fuel price.

[Image – Photo by Juan Fernandez on Unsplash]

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