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Thursday / 20 June 2024
HomeNewsOfficial petrol price hikes for February announced

Official petrol price hikes for February announced

The Department of Mineral Resources and Energy (DMRE) has gazetted February’s official fuel price adjustments, showing that almost all fuel types are getting more expensive.

BusinessTech reports that petrol is going up by 28 cents per litre at inland rates, whereas diesel will jump by a maximum of 9 cents per litre.

The official fuel price changes for the month of February, according to the DMRE, are as follows:

  • Petrol 93 – Increase of 28 cents per litre
  • Petrol 95 – Increase of 28 cents per litre
  • Diesel 0.05% – Increase of 9 cents per litre
  • Diesel 0.005% – Decrease of 1 cent per litre

These adjustments are taking effect from Wednesday, 1 February 2023.

Fuel tax hikes expected in February

Towards the middle of January, all signs pointed to another drop in fuel prices come February thanks to a docile oil market and an appreciating rand.

However, since then, oil prices have risen again and now sit around $85 per barrel after trending towards $79 per barrel at the start of the month.

The commodity’s rally is the main cause of this month’s unpleasant fuel price adjustments, as, despite a 43.84c/l cut to the Slate Levy and a continually firm local currency, it resulted in significant contributions to the Basic Fuel Prices of petrol and diesel by 92.74 c/l and 71.40 c/l, respectively.

More bad news could be on the horizon for March, too.

In February, finance minister Enoch Godongwana will perform his annual budget speech and Efficient Group founder and chief economist Dawie Roodt has warned that this year, the minister may hike fuel taxes after abstaining from doing so in 2022.

“I am sure we will see an increase in the petrol price in March because the finance minister always increases the fuel levy during his February meeting,” said Roodt.

“The increase in fuel taxes is very painful, but a tax on petrol is less damaging to the economy than an increase in company or personal income taxes.”

If this comes to fruition, we may very well see another unwelcome increase in driving costs next month.

The table below shows how February’s fuel price adjustments will reflect at the pump:

Fuel type Inland Coastal
Petrol 93 R21.38 R20.73
Petrol 95 R21.68 R21.03
Diesel 0.05% R21.32 R20.67
Diesel 0.005% R21.41 R20.77

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