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Sunday / 14 July 2024
HomeNewsOfficial petrol price hikes for October – Big increases across the board

Official petrol price hikes for October – Big increases across the board

The Department of Mineral Resources and Energy (DMRE) has published the official fuel price changes that will take place on Wednesday, 4 October.

All fuel types will experience an increase of at least R1.00 per litre, though diesel users are worse affected with a price jump of nearly R2.00 for both fuel grades, meaning South Africans are now looking at a fuel cost above the R25 mark for the first time in several months.

The DMRE attributes these hikes to an increase in the international product price of oil, which is the result of growing demand during the period under review from 1 to 28 September.

It also noted that the rand depreciated against the US dollar during the same period, going from an average of R18.67 to R18.98 per US dollar. This led to a higher contribution to the Basic Fuel Prices (BFP) of petrol and diesel by 24.17c/l and 26.63c/l, respectively. 

Adjustments to the BFP are also made at the start of every yearly quarter, which resulted in changes to the differentials between the petrol 93 and 95 octanes.

Due to all of these factors, South Africa’s fuel prices will be adjusted as follows this Wednesday:

  • Petrol 93 – Increase of R1.08 per litre
  • Petrol 95 – Increase of R1.14 per litre
  • Diesel 0.05% – Increase of R1.97 per litre
  • Diesel 0.005% – Increase of R1.94 per litre

South Africa’s petrol and diesel slate balances amounted to a negative balance of R3.519 billion as of August 2023, which led to the implementation of a Slate Levy of 30.70c per litre this month, in line with the provisions of the Self-Adjusting Slate Levy Mechanism.

Petrol Pump Header

Rising costs

The official fuel prices are noticeably higher than the projections that were published by the Central Energy Fund (CEF) earlier this week, where petrol was expected to go up by 77c and diesel by R1.65.

Unfortunately, this trend is expected to continue for the rest of the year, as global demand from regions like continental Europe which is approaching winter months is driving up the international price of oil.

Domestically, issues like the recent floods in provinces including the Western Cape have also created headaches with road closures impacting the movements of fuel trucks and other goods vehicles, which is expected to lead to increased costs for consumers further down the line.

On a more positive note, Gavin Kelly, the CEO of the Road Freight Association (RFA), said that October’s fuel price jumps are likely to have a smaller effect on inflation than in previous months.

“Now, it’s going to have an impact on consumer’s pockets. Hopefully, it’s not going to be too bad on inflation… so the reserve bank should stand steady, but it’s going to be a tough end of the year definitely,” he said.

The following table shows how October’s fuel price adjustments will reflect at the pump:

Fuel type Inland Coastal
Petrol 93 R25.22 R24.50
Petrol 95 R25.68 R24.96
Diesel 0.05% R25.02 R24.29
Diesel 0.005% R25.22 R24.53

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