As we speed into 2024, let’s shift gears and talk about something that actually matters to all of us – January petrol prices.
Petrol prices: Here’s how much a litre may cost from Wednesday, 3 January 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.
This year, the fuel price forecast looks a bit brighter, making it a smoother ride for everyone’s wallets in ‘Janu-worry’.
January petrol prices are slated for a delightful dip starting Wednesday.
Petrol 93 (ULP and LRP) will cost 62 cents less per litre, while Petrol 95 (ULP and LRP) is due to ease down by 76 cents per litre.
Diesel’s joining the party too – Diesel 0.05% will see a drop of R1.18 per litre and Diesel 0.005% should be down by R1.26 per litre.
Here is a look at the estimated petrol price changes expected on Wednesday, 3 January 2024:
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R22.49 | -R0.76 |
Petrol 93 | R22.17 | -R0.62 |
Diesel 0.05% | R20.64 | -R1.18 |
Diesel 0.005% | R20.73 | -R1.26 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R21.77 | -R0.76 |
Petrol 93 | R21.45 | -R0.62 |
Diesel 0.05% | R19.91 | -R1.18 |
Diesel 0.005% | R20.04 | -R1.26 |
Factors impacting petrol prices in January 2024
So, what’s driving these changes? Well, it turns out the average international product prices for petrol and diesel took a bit of a tumble.
However, the rand decided it wasn’t going to play along and depreciated against the US Dollar. In the intricate dance of economics, this depreciation nudged the basic fuel prices up a tad for petrol, diesel, and illuminating paraffin.
But here’s a plot twist – the Slate Levy is now at 0.00 c/l, down by 26.32 c/l. This little manoeuvre is helping to ease the price pressure on petrol and diesel from Wednesday, 3 January 2024.
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.