Nasty R3/l+ diesel price hike at the pumps confirmed for September

The price of petrol, diesel, and paraffin is officially going up come September. The Department of Mineral and Petroleum Resources (DMPR) has officially confirmed a fuel price increase across the board for South African motorists, with diesel being hit the hardest after a particularly tough month. The changes will kick in on the morning of Wednesday, 2 September. That leaves you plenty of time to take advantage of the current prices.

Grab those tekkies out of the cupboard

It’s quite a different tune from the one we heard at the beginning of August. Then, petrol drivers celebrated a decrease — all thanks to changes made to the Slate Levy. They’re not so lucky now. A combination of raised oil prices, an increase in the Slate Levy, and a hike meant to accommodate a wage increase for Forecourt employees has resulted in Saffas paying more at the pumps this September than they did throughout August. Yikes.

Anyone keeping up with the petrol price predictions throughout August has been expecting this for some time. The Central Energy Fund (CEF), in conjunction with the DMPR, tracks those factors that influence the price of fuel locally, and provides daily fuel price snapshots to accurately forecast the coming fuel price adjustments.

The CEF tracks the price of oil globally, which serves as one of the biggest factors behind the adjustments. With the war between the States and Iran still ongoing, oil reserves are drying up quicker than before, sending the price skyrocketing. At the time of writing, the average price of Brent Crude oil is around $90/barrel, well above the prices we saw at the beginning of August — roughly $80/barrel.

This, in addition to the 21.9c/l being added to the Slate Levy, as well as a 4.9c/l increase in the price structures of petrol, is responsible for the increase. The Rand actually spared the country from larger increases, having managed to strengthen against the Dollar throughout August.