South African motorists are set to see a significant drop in fuel prices from Wednesday, 2 October 2024, as announced by the Central Energy Fund (CEF).
Story Summary:
- Petrol 95 will decrease by R1.14 per litre.
- Diesel 0.05% will drop by R1.14 per litre.
- Illuminating paraffin will decrease by R1.11 per litre.
Petrol prices: Here’s how much a litre may cost from Wednesday, 2 October 2024
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
For petrol users, the retail price of Petrol 95 ULP & LRP will decrease by R1.14 per litre, while Petrol 93 ULP & LRP will drop by R1.06 per litre.
Diesel users can expect a decrease of R1.14 per litre for Diesel 0.05% sulphur and R1.12 per litre for Diesel 0.005% sulphur.
Illuminating paraffin, used for cooking and lighting, will also see a decrease of R1.11 per litre in the wholesale price, while the Single Maximum National Retail Price (SMNRP) will decrease by R1.48 per litre
This means that in Gauteng, the new price for a litre of Petrol 95 will be R21.05, down from R22.19, and for Diesel 0.05%, it will now be R18.45, offering some relief to motorists.
Here is a look at the estimated petrol price changes expected on Wednesday, 2 October 2024:
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R21.05 | -R1.14 |
| Petrol 93 | R20.79 | -R1.06 |
| Diesel 0.05%* | R18.45 | -R1.14 |
| Diesel 0.005%* | R18.60 | -R1.12 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R20.20 | -R1.14 |
| Petrol 93 | R19.26 | -R1.06 |
| Diesel 0.05%* | R18.44 | -R1.14 |
| Diesel 0.005%* | R17.80 | -R1.12 |
Factors impacting petrol prices in October 2024
The main reasons for the price drop are changes in the international oil market and a stronger rand.
According to the CEF, the average international product prices for petrol, diesel, and illuminating paraffin decreased during the past month.
This means that it cost less to import fuel into South Africa.
Another factor contributing to the decrease is the appreciation of the South African rand against the US dollar.
During the period from 30 August 2024 to 26 September 2024, the rand strengthened, averaging R17.67 per dollar compared to R18.06 in the previous period.
This made it cheaper to buy fuel on the international market, leading to a reduction in fuel prices locally
However, the Maximum Retail Price for LPGAS saw a slight increase of 23 cents per kilogram, meaning that households using LPGAS might see a small rise in their costs.
In summary, the combination of lower international oil prices and a stronger rand has resulted in this welcome drop in fuel prices.
This adjustment will take effect from Wednesday, 2 October 2024, bringing relief to motorists and consumers across the country.
Fuel-saving tips to cushion the blow
To mitigate the impact of rising fuel costs, consumers can adopt several fuel-saving strategies.
Regular vehicle maintenance, such as ensuring tyres are properly inflated, can improve fuel efficiency. Planning routes to avoid congestion and reduce idle times, along with adopting smoother driving habits, can also lead to significant savings.
Additionally, carpooling and the use of more fuel-efficient vehicles or alternative modes of transportation, such as cycling or public transport, can further help manage and reduce overall fuel expenditure.
Currency Fluctuations and International Prices
The recent period between 02 February 2024 and 29 February 2024 saw a depreciation of the Rand against the US Dollar, moving from an average of 18.7655 to 19.0186.
This depreciation, alongside increases in the average international product prices for Petrol, Diesel, and Illuminating Paraffin, contributed to higher Basic Fuel Prices.
These economic factors are instrumental in determining the cost adjustments, impacting both the industry and the consumer market.
Retail and Refinery Cap Adjustments
The Single Maximum National Retail Price (SMNRP) for illuminating paraffin was set at 2,137.0 c/l for the period leading up to 02 April 2024, marking an increase from the previous period’s price cap.
Additionally, the Maximum LPGas Refinery Gate Price was determined to be R 15,387.93 per metric ton, excluding VAT, for the same period, indicating a strategic pricing decision aimed at stabilizing the LPGas market.
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.
