The Department of Minerals Resource and Energy (DMRE) has announced fuel price adjustments for October, and South Africans are in for yet another shock.
The price of both grades of petrol will go up at midnight on Wednesday by R1.08 a litre for 93 octane, while 95 octane petrol goes up by R1.14.
Diesel will increase by R1.96 and R1.93 for the different grades while illuminating paraffin goes up by R2.02 cents a litre.
The main reasons for the fuel price adjustments are due to:
The average Brent Crude oil price increased from 84.78 US Dollars (USD) to 91.86 USD during the period under review.
The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased due to the following factors:
(a) refinery shutdowns in the United States of America,
(b) shortage of diesel globally.
(c) LPGas increased because of higher prices of Propane and Butane and higher freight costs.
These led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 58.73 c/l, 138.85 c/l and 124.15 c/l, respectively.
Meanwhile, the Rand depreciated on average, against the US Dollar (from 18.67 to 19.00 Rand per USD).
DMRE says the last factor is that the cumulative slate balance on petrol and Diesel at the end of August 2023 had a negative balance of R3,5 million.
Therefore, a slate levy of 30.70 cents per litre will be implemented in the price structure of petrol and diesel with effect from the 4th of October 2023.
