Mantashe Governs New Fuel Price Adjustments for September 2023

South African motorists are to bear the financial weight of wage adjustments for forecourt staff from September. This was heralded by the announcement of new fuel price adjustments by the Department of Minerals and Energy. Driven by a need to facilitate wage adjustments, each litre of fuel will cost an additional five cents.

Effective from the 6th of September 2023, the latest regulatory measures will see the cost of both grades of petrol ascend by R1.71 per litre. In addition, diesel consumers will experience a surge in prices by either R2.76 or R2.84 per litre, based on the grade. Aficionados of illuminating paraffin also won't be spared, as a litre will cost an extra R2.78. LP Gas also moves a notch up, costing R2.26 more per kilogram.

As stated by Department spokesperson, Robert Maake, these adjustments are a direct result of the growing global fuel price index. "The average Brent Crude oil price increased from 79.75 US Dollars (USD) to 84.78 USD during the period under review, as Saudi Arabia curtailed production, tightening supply," he elaborated. He adds the international petrol, diesel, illuminating paraffin and LP Gas prices also soared within the period under review. Compounding the situation, the South African Rand depreciated against the US Dollar.

As part of this new adjustment, the Minister of Mineral Resources and Energy approved a slight increase in the petrol price structure. "A 5.0 c/l increase in the price structures of petrol will accommodate the wage increase for Forecourt employees following the Motor Industry Bargaining Council Agreement," revealed Maake.

The new price adjustments in the fuel market reaffirms the dynamic and fluctuant nature of global energy prices and how it impacts economies at the domestic level.