Petrol and diesel prices to go up in March 2023 announced DMRE

Motorists are set to feel the pinch on Wednesday following the announcement that the price of petrol will go up.

The rise in prices comes amid a supply crunch worldwide, the Department of Mineral Resources and Energy announced on Monday night.

The price of both 95 and 93 unleaded petrol will be hiked by R1.27 a litre, while diesel will go up by between 30c and 32c.

Illuminating paraffin will increase by 13c a litre, while the maximum retail price for LP gas will be hiked by R5.22 a kilogram. 

Looking at inland areas such as Gauteng, the price of a litre of 95 unleaded petrol will increase to R22.95, while it will increase to R22.30 on the coast.

This is still lower than December’s price of R23.45 in Gauteng. A year ago, 95 petrol retailed for R21.60 in Gauteng.

This website also reported that petrol price hikes were expected in March which will see the Gauteng diesel price reaching R21.62 on Wednesday, from R18.87 a year ago.

Fuel prices are largely determined by the oil price, as well as the rand – as oil is priced in dollars.

The rand took a big hit in February, as the dollar rallied due to expectations that US interest rates will still be hiked by large margins. The local currency weakened from R17.04/$ at the start of the month to R18.40 on Monday.

Meanwhile, the average Brent crude oil price decreased slightly, from $83 per barrel to $82.14.

BusinessTech Africa understands that petrol prices are increasing at a higher rate than diesel because of lower inventory levels globally and closures of refineries in some countries for seasonal maintenance, the department said in a statement.

The impact of the EU sanctions on diesel imports from Russia was already priced in – announced the department.