The Department of Mineral Resources and Energy has gazetted the new fuel price adjustments which will come into effect on 2 February 2022.
The fuel price adjustments show a sharp increase in prices for all types of fuel, as reported by BusinessTech.
The official fuel price adjustments that will come into effect on 2 February are:
- Petrol 93 – Increase of 53 cents per litre
- Petrol 95 – Increase of 53 cents per litre
- Diesel 0.05% – Increase of 80 cents per litre
- Diesel 0.005% – Increase of 79 cents per litre
- Illuminating Paraffin – Increase of 101 cents per litre
Therefore, the official inland fuel prices for South Africa from 2 February 2022 will be:
- Petrol 93 – R19.89 per litre
- Petrol 95 – R20.14 per litre
- Diesel 0.05% – R18.04 per litre
- Diesel 0.005% – R18.07 per litre
- Illuminating paraffin – R11.97 per litre
Factors affecting the fuel price
Rising oil prices in January were the main reason for the fuel price increases in South Africa in February, as this caused a rise in average international product prices for petrol, diesel, and illuminating paraffin.
Oil markets opened the week on a high note briefly touching $90 per barrel, according to Bloomberg, and are set for the biggest January gain in at least 30 years.
Seemingly endless demand and weak supply assisted in the rise in oil prices, with major banks and oil companies expecting crude oil to soon pass $100 per barrel.
On the bright side, the South African rand found more strength against the US dollar during January and this has slightly reduced the damage created by rising oil prices.
On average, the local currency stood at R15.5081/dollar in January, compared to R15,9196/dollar the previous month.
In addition, the combined over-recoveries and under-recoveries in the country’s Slate account amounted to a negative balance at the end of December 2021, leading to a decrease of 13.16 cents per litre in the Slate Levy on fuels.
The new Slate Levy for February will be 30.70 cents per litre.
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