Rising of fuel prices

Petrol and diesel will increase from Wednesday, 07th of February 2024. The follows steep price cuts in recent months. South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.

Unleaded Petrol of both grades, which is 93 and 95 will rise by 75c a liter, bringing the Gauteng price of 95 unleaded petrol to R23.2 a liter, while the coastal price will reach R22.52. the wholesales price of diesel will increase by between 70c and 73c on Wednesday, leaving the Gauteng diesel price at R21.36 a liter with the coastal price rising to R2064.

The wholesale price of illuminating paraffin will be hiked by 53c a liter and the maximum retail price for LP gas is going up by 37c per kg. The rand also weakened from around R18.66 to R18.77 over the past month, amid concerns that US interest rates may not be cut as early as expected.

The department of mineral resources and energy noted that this was due in part to attacks on red sea oil cargoes, which caused shipping companies to re-route cargoes around the cape of good hope. This increased shipping rates as the route is much longer. In addition, cold weather hit oil production in the US.

At the start of January, petrol was cut by 26 cents per liter to R22.49. the lowest price since July 2023. Diesel was lowered by between R1.18 and R1.26 to R20.63, also the best level since July.

By: Bila Asnath