We come bearing bad news for motorists, unfortunately, as petrol price estimates provided by the Central Energy Fund (CEF) suggest another possibly steep hike at the pumps from Wednesday, 5 July 2022.
UPDATE: The department of mineral resources and energy released a statement on Monday, 4 July 2022, confirming final adjustment prices for petrol in July 2022. – 11:34
A number of internal and external factors contributed to the upward adjustment to fuel prices which are set to go into effect on Wednesday, 6 July 2022.
To mitigate a record increase, the department implemented an R0.75 reduction to the general fuel levy (GFL), which expires on 3 August 2022. With no further reliefs applied to July’s petrol prices, you can see the final adjustments below.
Petrol price: Here’s how much a litre may cost from Wednesday, 5 July 2022
The Department of Energy averted a catastrophic petrol price increase in June 2022 by extending the general fuel levy (GFL) relief for a further two months. A total of R1.50 was shaved off the R3.93 GFL for June 2022, and this month, the relief will be halved to R0.75, before it expires in August.
This means that more than likely, the South African government may not be able to intervene in reducing the impact of the impending fuel hike.
Taking into consideration the CEF’s latest fuel price estimations, published on Friday, 24 June 2022, this is how much a litre of fuel may cost from Wednesday, 5 July 2022:
PLEASE NOTE: The petrol price estimations listed above are speculative and likely to be affected by daily oil price 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 exact levy, taxes and other costs included in the final retail price of fuel in South Africa.
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R26,74 | +R2,57 |
| Petrol 93 | R26,31 | +R2,37 |
| Diesel 0.05% | R25,41 | +R2,31 |
| Diesel 0.005% | R25,52 | +R2,30 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R26,09 | +R2,57 |
| Petrol 93 | R25,66 | +R2,37 |
| Diesel 0.05% | R24,75 | +R2,31 |
| Diesel 0.005% | R24,87 | +R2,30 |
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 performance of the rand in currency markets, as well as oil price movements. Using this information, the CEF is able to formulate basic fuel price (BFP) estimates which, in essence, offers 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, a number of additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and to inject 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.
