As we approach a new month, the Department of Mineral Resources and Energy has issued a statement highlighting the impending and drastic increase in the price of fuel taking effect from the 1st of March 2023.
The Department of Mineral Resources and Energy has announced that for March 2023, the price of petrol (93 and 95 ULP) will increase by R1,27. Inland prices for 93 Petrol will soar from R21,38 to R22,65 while coastal prices will increase from R20,73 to R22 per litre. The inland cost per litre for 0.05% Diesel will climb from R21,32 to R21,68, while the coastal price will increase from R20,67 to R20,97.
These are the main contributors to the severe increase in fuel price for March 2023:
- Crude oil prices. The price of Brent Crude oil decreased slightly from $83,00 to $82,14 per barrel during the DMRE’s review period. Despite the decrease in price per barrel, a weekly report highlighted the continued rise in crude oil inventories which marked the ninth month in a row that reflected this exact trend.
- Global petroleum product prices. Global trends highlighted a decrease in the price of petroleum products, diesel and illuminating paraffin while the price of petrol increased. Additional contributing factors included the increase in the price of LPGas due to a higher freight rate.
- The Rand once again experienced a decline in its strength compared to the US Dollar. The increase saw the Dollar climb from 17,05 to 17,74 Rand per Dollar. This increase contributed to an increase in the Basic Fuel Prices of petrol, diesel and illuminating paraffin of 48,26 cents, 52,53 cents and 53, 56 cents respectively
- Implementation of the Slate Levy. The tail end of January saw the negative slate balance of petrol and diesel result in a total of R2,7 billion. From the 1st of March, the slate levy an increase of 4,83 cents ultimately contributing to an increase from 17,54 cents to 21,92 cents in the prices of petrol and diesel.
Related: MyTank: A locally developed app enabling motorists to find the cheapest fuel
