The Department of Mineral Resources and Energy (DMRE) has announced the official fuel price increases for February, with costs going up across the board by as much as 75c per litre.
During January, the average international product prices for petrol and diesel rose in accordance with higher oil rates, subsequently contributing 69c/litre to the prices of petrol and between 63-66c/litre to the prices of diesel.
Over the same period, the rand depreciated against the US Dollar from an average of R18.6608/dollar on 28 December 2023, to R18.7655/dollar on 1 February 2024.
This led to a higher contribution to the Basic Fuel Prices of petrol and diesel by 6.86c/litre and 7.41c/litre, respectively.
In line with the provisions of the self-adjusting Slate Levy mechanism, the Slate Levy on petrol and diesel will remain at 0.00c/l with effect from 07 February 2024.
With these inputs accounted for, fuel prices in South Africa this Wednesday will be adjusted as follows:
- Petrol 93 – Increase of 75c a litre
- Petrol 95 – Increase of 75c a litre
- Diesel 0.05% – Increase of 73c a litre
- Diesel 0.005% – Increase of 70c a litre
The following table shows how February’s fuel price changes will reflect at the pump:
| Fuel type | Inland | Coastal |
|---|---|---|
| Petrol 93 | R22.92 | R22.20 |
| Petrol 95 | R23.24 | R22.52 |
| Diesel 0.05% | R21.36 | R20.64 |
| Diesel 0.005% | R21.43 | R20.74 |
Potential fuel tax hikes in February
The finance minister’s annual budget statement, in which he announces if there will be any changes to fuel taxes in South Africa, is scheduled to take place this February.
National Treasury recently said it is looking to raise R15 billion in additional taxes in 2024 to make up for a deficit in GDP growth, but opinions are split on whether the minister will keep fuel levies as they are or push them up.
Consulting firm Deloitte’s Billy Joubert believes that higher fuel taxes will not materialise due to the current cost-of-living crisis facing many households in the country as the government would want to “keep money directly in the pockets of consumers.”
Joubert told BusinessTech that should there be an increase, it would probably be minimal as the R15 billion Treasury needs only represent a small portion of the total tax collected in the country.
Contrastingly, accounting firm Sage says motorists can expect higher fuel taxes to be on the cards for this year.
“For the past two years, the government has maintained the fuel levy at a consistent level to support individuals and businesses grappling with higher petrol and diesel prices,” said the company.
“However, this year, we will likely see an increase in line with inflation.”
The most recent inflation data showed a decrease from 5.5% in November to 5.1% in December, with inflation averaging 6.0% over 2023.
Therefore, should an inflation-based hike come through, motorists could expect to be paying in the region of 27c to 37c per litre more in fuel taxes come April.
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