International oil prices trigger SA fuel price hike

By Khulile Thwala

Petrol and diesel prices are increasing by 28 cents and 9 cents a litre respectively from tomorrow in South Africa.

Speaking on SA news outlet eNCA, Automobile Association’s Layton Beard says that South Africa did not benefit from a stronger Rand as the price of brent crude continues to rise.

China, which is the world’s largest oil consumer, has opened up its economy after a period of strict lockdown restrictions, pushing up demand.

Beard says there are different components and factors which play a role in increasing fuel prices including international petroleum product prices, that is international oil prices and the Rand/US Dollar exchange rate.

“It is those international product prices that are causing the biggest issue for SA in terms of the local price. In fact, the strength of the Rand against the US Dollar is actually taking off some of the gains that the international oil price is making, so if it wasn’t for the Rand coming into play those increases could have been more significant.”

“Movement in international product prices is creating quite a lot of pressure on the local fuel price and that is really the main driver behind the price hike,” he said during the eNCA interview.

The SA Department of Mineral Resources and Energy has published the official fuel price adjustments for February 2023. As projected in the last week, petrol and diesel prices will be going up in February, increasing by 28 cents and between 1 cent and 9 cents per litre, respectively.

The Lilangeni is pegged with the Rand which will see the likelihood of the fuel price also changing locally soon.

FUEL                                    PRICE CHANGE
Petrol 93                             increase of 28 cents per litre
Petrol 95                             increase of 28 cents per litre
Diesel 0.05%                      increase of 9 cents per litre
Illuminating Paraffin         increase of 58 cents per litre
LPGAS                                increase of 140 cents per kilogram