Johannesburg - Just as we had all expected, significant fuel price increases have been confirmed for March 2023.
The Department of Mineral Resources and Energy (DMRE) announced on Tuesday that both grades of petrol would increase by R1.27 per litre, from Wednesday, March 1, while diesel would go up by between of 30 cents (500ppm) and 31 cents (50ppm).
This means that a litre of 95 Unleaded petrol will now set you back by R22.30 at the coast and R22.95 in Gauteng and other inland regions, where 93 Unleaded will now cost R22.65. The wholesale price of diesel, meanwhile, moves up to R21.08 at the coast and R21.72 inland, although retail prices at the pumps will be somewhat higher than that.
South Africans who drive petrol-powered cars will have to budget quite a bit more for their fill-ups this month.
Those driving small hatchbacks like the Kia Picanto, and assuming that they put 30 litres into its 35 litre tank, will pay R38 more a refuel than in February.
Putting 35 litres into a Volkswagen Polo will cost an additional R44.45, while a 50-litre refuel of a medium-sized car like a Toyota Corolla or Rav4 will come with a R63.50 penalty versus last month. Fill up four times a month and that’s an extra R254!
Filling a Toyota Hiace with 65 litres will cost an additional R82.55 in March. If you drive a large luxury SUV like a Mercedes-Benz GLE then you need to budget an extra R95, which shouldn’t be a problem if you’re in that league.
The impact will be much smaller, of course, if you drive a diesel vehicle like a Ford Ranger or Everest. Most vehicles in this category have 80 litre tanks, so a 75 litre refuel will cost R23.25 more than last month.
Why are fuel prices increasing?
While the average Brent Crude oil price actually decreased slightly from $83 per barrel to $82.14, international petrol prices increased at a higher rate than diesel because of lower inventory levels globally, the DMRE said, resulting in a 73-cent-per-litre under-recovery for petrol, while diesel was in the green to the tune of 26 cents.
However, the South African rand worked against us last month by depreciating to an average of R17.74 to the US dollar in February, from R17.05 the previous month, thereby adding around 50 cents a litre to the fuel price equations for March.
The final nail in the coffin was the country’s negative slate balance of R2.7 billion, causing the slate levy to increase by 4 cents to 22 cents per litre. The Slate Levy exists to reimburse fuel companies for the imbalances resulting from the oil price fluctuations in the preceding month.
The Automobile Association has urged motorists to budget carefully as four refuels in a month can easily add around R200 to your monthly bill.
“We again urge consumers to monitor their fuel usage carefully, and to budget according to the new fuel prices which come into effect next Wednesday. Ensuring vehicles are well maintained and in good mechanical condition, carefully planning routes, and avoiding heavy traffic, if possible, are some ways in which motorists can ensure better fuel consumption,” the AA said.
Click here for some real-world fuel saving tips.