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Petrol Price Shoots Back to Over R20/litre in February

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February 2022 fuel prices have been released and it’s not good news for South Africans as they reflect a sharp hike for both petrol and diesel.

The Department of Mineral Resources and Energy published the latest fuel price adjustments which were pushed up by rising oil prices.

The increases have pushed petrol 95 above the R20/litre mark once again. A stronger rand versus the dollar helped a little to keep the hike minimal.

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The only good news in fuel adjustments is a lower maximum retail price for LPGAS, which will be decreasing by R1.24. The fuel price adjustments will come into effect on Wednesday, 2 February 2022.

The full list of changes is as follows:

  • Petrol 95:  increase of 53 cents per litre
  • Petrol 93:  increase of 53 cents per litre
  • Diesel 0.05%:  increase of 80 cents per litre
  • Diesel 0.005%:  increase of 79 cents per litre
  • Illuminating Paraffin:  increase of 101 cents per litre

The average international product prices for petrol, diesel and illuminating paraffin increased during the period under review.

Bloomberg reported that oil markets opened the week higher and were heading for the biggest January gain in at least 30 years as robust demand outpaced fresh supply. Brent crude touched $90 per barrel briefly.

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Booming demand, scratchy supply and dwindling stockpiles has helped crude soar in January, with top banks and oil companies saying prices may soon pass $100 a barrel, Bloomberg said.

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 31 December 2021 to 27 January 2022 was 15.5081 compared to 15.9196 during the previous period.

This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 25.98 c/l, 26.24 c/l and 26.19 c/l respectively.

Slate levy decrease

The combined cumulative petrol and diesel Slate balances at the end of December 2021 amounted to a negative balance of R3.490 billion. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 30.70 c/l (decrease of 13.16 c/l) will have to be implemented into the price structures of petrol and diesel with effect from 02 February 2022, the department said.

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This is how the prices will reflect at the pumps when factoring in the slate levy and other costs.

Fuel (Inland) January official February official
95 Petrol R19.61 R20.14
93 Petrol R19.36 R19.89
0.05% diesel (wholesale) R17.24 R18.04
0.005% diesel (wholesale) R17.28 R18.07
Illuminating Paraffin R10.96 R11.97
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