The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announces the adjustment of fuel prices based on current local and international factors with effect from the 6th of March 2024.
South Africa’s fuel prices are adjusted monthly, 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.
The main reasons for the fuel price adjustments are due to:
1. Crude oil prices
The average Brent Crude oil price increased from 82.03 US Dollars (USD) to 82.50 USD during the period under review. The higher oil price is be attributed to,
(a) The continued OPEC+ oil production cuts and the extremely cold weather which affected production from North America, and
(b) The continued tension in the Red Sea, which added to the geopolitical risk premium on the shipping costs.
2. International petroleum product prices
The average international product prices of petrol, diesel and illuminating paraffin increased in line with the higher crude oil prices. LPG prices increased due to higher freight cost and weaker Rand. These factors led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 102.82 c/l, 102.76 c/l and 47.42 c/l, respectively.
3. Rand/US Dollar exchange rate
The Rand depreciated slightly on average, against the US Dollar (from 18.77 to 19.20 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 17.71 c/l, 18.74 c/l and 18.53 c/l, respectively.
4. Implementation of the Slate Levy
The cumulative slate balance on petrol and Diesel at the end of January 2024 had a positive balance of R239 million. Therefore, a slate levy of zero c/l will be implemented in the price structure of petrol and diesel with effect from the 6th of March 2024.
5. Adjustments to the Road and Pipeline Transport Tariffs (4 Zones Differential)
Transnet Pipelines (TPL) has decommissioned the Kroonstad pipeline on the 31st of December 2023. This has affected the 4 Magisterial District Zones (MDZ) which are 8C, 9C, 10C and 11C. In line with the Ministerial approval, the transport tariffs adjustments that are applicable to petrol and diesel price structures will range from a decrease of 5.7 c/l (8C) to an increase of 0.9 c/l (10C). As a result, the different transport tariff adjustments for the 4 MDZ will be implemented with effect from the 6th of March 2024.
6. Illuminating Paraffin Tracer Dye Levy Increase
The Minister of Mineral Resources and Energy with the concurrence Minister of Finance, approved an increase from 0.1 c/l to 1.0 c/l in the IP Tracer Dye Levy that is applicable to Diesel with effect from the 6th of March 2024. This increase is temporary until the 5th of March 2025. The IP Tracer Dye levy will decrease to 0.5 c/l thereafter.
Based on current local and international factors, the fuel prices for March 2024 will be adjusted as follows:
The fuel prices schedule for the different zones will be published on Tuesday, the 5th of March 2024.
Enquiries: mediadesk@dmre.gov.za
Mr Natie Shabangu – natie.shabangu@dmre.gov.za / 073 852 1922 Mr Johannes Mokobane - johannes.mokobane@dmre.gov.za / 082 766 3674 Mr Ernest Mulibana – ernest.mulibana@dmre.gov.za / 082 263 7372