Following September’s brutal fuel price hikes, petrol and diesel are set for more steep increases in October 2023, the Department of Energy and Mineral Resources (DMRE) has announced.
According to the department’s official statement, petrol will increase by between R1.08 (for 93 Unleaded) and R1.14 (95 Unleaded) from Wednesday, October 04, while diesel prices will go up by between R1.93 (low-sulphur 50ppm) and R1.96 (500ppm).
Following these increases, a litre of 95 Unleaded will now set you back R24.96 at the coast and R25.68 in the inland regions, while 93 Unleaded will rise to R25.22.
The even steeper diesel increases will see the wholesale price of 50ppm rising to R24.51 at the coast and R25.22 inland, while 500ppm will cost R24.29 and R25.01 respectively. Keep in mind that this excludes the retail margin, which is usually around R2 depending on the outlet, as diesel is unregulated.
October’s fuel price adjustments will add insult to injury for South African motorists, following September’s increases of R1.71 for petrol and up to R2.84 for diesel.
As with these previous hikes, October’s prices were primarily driven by stronger international oil prices, with Brent crude having breached the $90 mark in September for the first time in almost a year.
Higher than expected
The official fuel price hikes are higher than predicted. Earlier indications had pointed to hikes of just over 80 cents for petrol and R1.65 for diesel. However, the DMRE said a Slate Levy of around 30 cents had been implemented. This self-adjusting pricing scale compensates for daily oil price fluctuations during the preceding month.
These latest increases also bring petrol prices dangerously close to the all-time highs of July 2022, when a litre of 95 Unleaded cost R26.74 inland.
The Automobile Association said it was concerned that South Africa’s government has not announced any measures to deal with fuel prices more effectively.
This latest round of increases will hit consumers hard at a time when they were already feeling extreme financial pressure, the association said.