Following three consecutive months of reprieve, the petrol price in South Africa will shoot back up from Wednesday, 2 November 2022
Petrol price: Here’s how much a litre may cost from Wednesday, 2 November 2022
The ongoing Ukraine war continues to impact the movement of oil prices in global markets. Coupled with the South African rand that has, in recent weeks, struggled to gain momentum against the US dollar, the impending increase on fuel was always inevitable.
As reported by BusinessTech, the Department of Mineral Resources revealed, on Friday, 28 October 2022, that the price of petrol is set to increase by 51 cents, while diesel will see a massive R1.40 p/ltr jump.
Taking into consideration the department’s petrol price announcement, this is how much a litre of fuel may cost from Wednesday, 2 November 2022
PLEASE NOTE: The petrol price estimations listed above are speculative and likely to be affected by daily oil prices and currency fluctuations. To determine the price per litre estimation, we used the BFP estimation from the CEF’s latest daily analysis, along with Shell’s most recent petrol price update, which lists a detailed breakdown of the levies, taxes and other costs included in the final retail price of fuel in South Africa.
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R22.87 | +R0.51 |
Petrol 93 | R23.46 | +R0.51 |
Diesel 0.05% | R25.49 | +R1.43 |
Diesel 0.005% | R25.75 | +R1.44 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R22.22 | +R0.51 |
Petrol 93 | R21.92 | +R0.51 |
Diesel 0.05% | R24.84 | +R1.43 |
Diesel 0.005% | R25.11 | +R1.44 |
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements. Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.