Motorists can expect to dig deeper into their coffers for this month, after the Department of Mineral Resources and Energy announced steep fuel prices.
The department said the price adjustments of fuel prices based on current local and international factors will come into effect from 7 February 2024.
“Consumers will now pay 75c more for a litre of unleaded petrol of both grades, 93 and 95, while the wholesale price of diesel will go up by between 70c and 73c.
The wholesale price of illuminating paraffin will be increased by 53c a litre and the maximum retail price for LP gas is going up by 37c per kg,” said the department spokesperson, Robert Maake.
This is the first fuel adjustment for 2024.
Maake highlighted that reasons given for the adjusted prices include among others international and local factors, beyond the country’s control.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, shipping costs,” added Maake.
According to the department, the main reasons for the fuel price adjustments are due to the cost of the average brent crude oil, which increased from $77.35 to $82.03 in January.
The tension in the Middle East that resulted in the attacks on oil cargoes in the Red Sea by Yemen Houthis rebels and geopolitical risk, have also contributed to the adjustments.
“This has caused an increase in shipping rates as ships are rerouted from the Middle East (Suez Canal) to Europe.
They have to use a longer and more expensive route around Africa since they cannot import from Russia,” explained Maake.
The department also cited the cold weather that has affected production in the USA, which has recently been part of the output used to offset the production cuts by OPEC+, which resulted in more than expected.
The department said there will be no slate levy implemented in the price structures of petrol and diesel with effect from 7th February 2024.
