South African motorists will be paying more as the petrol and diesel crisis hits on Wednesday (2 November) after the Department of Mineral Resources and Energy announced price hikes on Friday.
The Department of Mineral Resources and Energy (DMRE) announced the price of both petrol grades – 93 and 95 octane – will increase by 51 cents a litre on Wednesday.
The department said that the price increases are coming due to higher prices for international petroleum products as well as a weaker rand. The biggest pain, however, comes for owners of diesel vehicles.
Prices for petrol will jump by 51 cents per litre, while diesel prices will shoot up by around R1.40 a litre.
Why did diesel prices go up this week in South Africa?
Diesel, said the department, will rise by approximately R1.43 per litre.
Moreover, Illuminating paraffin will go up by 77 cents a litre but LP Gas will see a drop of 98 cents.
The department said the reasons for the hikes include rising crude oil prices – and the depreciation of the rand against the dollar.
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs,” said DMRE.
sis even before the strike started, with airports warning of jet fuel rationing and power utility Eskom sounding the alarm over its ability to get enough diesel for its generators.
Will diesel prices go down in 2022?
We do not know the exact time, but, in line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 70.14 c/l (decrease of 13.14 c/l) has been implemented into the price structures of petrol and diesel with effect from 02 November 2022.
According to Bloomberg, a diesel shortage is rapidly spreading across the United States, sending alarm bells ringing for other markets.
This exacerbates the soaring prices in Europe and the US, spurring a fresh bout of inflationary pressure ahead of a winter that is expected to see major supply disruption.
The Truck Association of South Africa, AgriSA, and the Road Freight Association have all warned that rising global demand and rising local prices will deeply impact the South African supply chain and consumers.
This is how the expected price changes could reflect at the pumps:
|Inland||October Official||November Official|
|0.05% diesel (wholesale)||R24.06||R25.49|
|0.005% diesel (wholesale)||R24.31||R25.75|
|Coastal||October Official||November Official|
|0.05% diesel (wholesale)||R23.41||R24.84|
|0.005% diesel (wholesale)||R23.67||R25.11|
The following table shows how much it now costs to fill up popular tank sizes with the two variations of unleaded petrol using inland prices.
|Tank size||93 unleaded||Difference in November||95 unleaded||Difference in November|
|45 litres||R1 015.65||+R22.95||R1 029.15||+R22.95|
|60 litres||R1 354.20||+R30.60||R1 354.20||+R30.60|
|80 litres||R1 805.60||+R40.80||R1 829.60||+R40.80|
The following table shows how much it now costs to fill up popular tank sizes with the two variations of diesel using inland prices.
|Tank size||Diesel 0.05%||Difference in November||Diesel 0.005%||Difference in November|
|45 litres||R1 147.05||+R64.35||R1 158.75||+R64.80|
|60 litres||R1 529.40||+R85.80||R1 545.00||+R86.40|
|80 litres||R2 039.20||+R114.40||R2 060.00||+R115.20|