MOTORING NEWS - While the South African Reserve Bank (SARB) has given South Africans some reprieve by the dropping the repo rate by 25 basis points, the same cannot be said about the petrol price.
Motorists are set for more pain with a rise in fuel prices for February.
The price increase will take effect on Wednesday, 5 February.
The prices will be going up by 82 cents per litre for 93 and 95 petrol, respectively, and between R1.01 and R1.05 cents per litre for diesel.
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.
According to the Minister of Mineral and Petroleum Resources, the main reasons for the fuel price adjustments are due to:
1. Crude oil prices
The average Brent Crude oil price increased from 72.78 US Dollars (USD) to 77.41 USD during the period under review. The main contributing factors increased demand due to cold weather in the Northern Hemisphere, anticipated increase in demand for oil from China following economic stimulation policies.
On the other hand, supply was affected by OPEC+ decision to delay production increase until April 2025 as well as new sanctions against Russia and Iran which could further constrain supply and result in higher freight rates.
2. International petroleum product prices
The average international petroleum product prices followed the increasing trend of crude oil while the prices of LPG increased because of higher freight cost amid the cold winter season in the Northern Hemisphere.
These factors led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 46.06 c/l, 66.26 c/l and 58.64 cents per litre (c/l) respectively.
3. Rand/US Dollar exchange rate
The Rand depreciated on average, against the US Dollar (from 18.11 to 18.73 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 36.85 c/l, 39.58 c/l and 38.61 cents per litre (c/l) respectively.
4. Implementation of the Slate Levy
The cumulative slate amounted to a positive balance of R4.05 billion for petrol and diesel of at the end of December 2024. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 5th of February 2025.
Based on current local and international factors, the fuel prices for February 2025 will be adjusted as follows:
? Petrol 93 (ULP & LRP): Eighty-two cents per litre (82.00 c/l) increase.
? Petrol 95 (ULP &LRP): Eighty-two cents per litre (82.00 c/l) increase.
? Diesel (0.05% sulphur): One hundred and five cents per litre (105.00 c/l) increase.
? Diesel (0.005% sulphur): One hundred and one cents per litre (101.00 c/l) increase.
? Illuminating Paraffin (wholesale): Ninety-seven cents per litre (97.00 c/l) increase.
? SMNRP for IP: One hundred and twenty-nine cents per litre (129.00 c/l) increase.
? Maximum LPGas Retail Price: Forty-two cents per kilogram (42.c/kg) increase.
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