The Department of Mineral Resources and Energy has published the latest fuel price adjustments for March 2022, showing a sharp hike in prices for both petrol and diesel in South Africa.
The changes for March are as follows:
- Petrol 95: increase of R1.46 per litre;
- Petrol 93: increase of R1.46 per litre;
- Diesel 0.05%: increase of R1.44 per litre;
- Diesel 0.005%: increase of R1.48 per litre;
- Illuminating Paraffin: increase R1.21 per litre.
The average international product prices for petrol, diesel and illuminating paraffin increased during the period under review.
The Rand appreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period 28 January to 24 February 2022 was 15.2343 compared to 15.5081 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 19.59 c/l, 19.66 c/l and 19.44 c/l respectively.
Adding to the increases, the slate levy was also increased by a further 15 cents per litre, hiking prices even more.
The combined cumulative petrol and diesel Slate balances at the end of January 2022 amounted to a negative balance of R 5.102 billion, the department said.
In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 46.06 c/l (an increase of 15.36 c/l) will have to be implemented into the price structures of petrol and diesel with effect from 2 March 2022
This is how the price changes are expected to reflect at the pumps:
|Fuel (Inland)||February official||March official|
|0.05% diesel (wholesale)||R18.04||R19.49|
|0.005% diesel (wholesale)||R18.07||R19.55|
“The massive fuel increases announced by the Department of Mineral Resources and Energy (DMRE) today will have a sharp and immediate effect on the poor, and a long-term impact on inflation,” said the Automobile Association (AA).
“These increases will certainly impact on every single South African given the reliance the country has on fuels for transportation, manufacturing and in the agricultural sector.”
The increases for March are mainly attributable to rising international petroleum prices as a result of Russia’s invasion of Ukraine and would have been more severe had the rand not stabilised against the US Dollar in the last few weeks, the group said.
The rand has since shown positive movement against the US currency and shaved some negativity off the final adjusted prices.
The AA said the outlook for April remains unclear but Russia’s military action in Ukraine could push international oil prices higher which will again impact locally.
The Association pointed to the global volatility and the unfolding Russian attacks on Ukraine, with the response from the European Commission as well as from its allies, doesn’t bode well for oil price stability
“For now, it’s a question of wait and see how these prices move in the next few weeks.
“One silver lining, though, is that any potential increases will not be combined with increases to fuel taxes as the minister of finance earlier this week announced the General Fuel and Road Accident Fund levies will not increase this year. This is good news, but must be tempered by what happens in the next few weeks to the overall pricing of fuel.”