On Tuesday, the Department of Energy confirmed petrol prices for 93 and 95 Unleaded, as well as diesel, will increase from Wednesday, 4 October 2023.
Petrol prices: Here’s how much a litre may cost from Wednesday, 4 October 2023
In a statement, the Energy Department revealed that from Wednesday, 93 and 95 Unleaded petrol is set to increase by R1.08 and R1.14, respectively, while users of 0.05% and 0.005% diesel will experience a fourth consecutive recommended price hike ranging between R1.96 and R1.93 per litre.
The department confirmed adjustments in fuel prices for this month were due to the following factors:
1. Crude oil prices
The average Brent Crude oil price increased from $84.78 to $91.86 during the period under review mainly due to:
- The continuing tightening of supply that emanated from extended production cuts by Saudi Arabia and Russia and low global oil inventories.
2 International petroleum product prices
The average international product prices of petrol, diesel, illuminating paraffin and LPGas increased during the period under review due to the following factors:
- High prices of petrol are because of refinery shutdowns in the United States of America,
- There is a shortage of diesel and other middle distillates globally. Diesel and paraffin prices increased because of autumn refinery maintenance and reduced exports from Russia amid increasing demand for middle distillates ahead of the winter season in the Northern Hemisphere, and
- LPGas increased because of higher prices of Propane and Butane and higher freight costs.
These led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 58.73 c/l, 138.85 c/l and 124.15 c/l, respectively.
3. Rand/US Dollar exchange rate
The Rand depreciated on average, against the dollar (from R18.67 to R19.00 per USD) during the period under review when compared to the previous one.
This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 24.17 c/l, 26.98 c/l and 26.59 c/l, respectively.
4. Implementation of the Slate Levy
The cumulative slate balance on petrol and diesel at the end of August 2023 had a negative balance of R3.5 million.
Therefore, a slate levy of 30.70 cents per litre will be implemented in the price structure of petrol and diesel with effect from 4 October 2023.
5. Octane differentials between 95 and 93 petrol grades
In line with the Working Rules to determine the Basic Fuels Prices (BFP), the 95 octane (unleaded) grade is the price-marker grade and the BFP-differential between 95 and 93 octanes is adjusted on the first Wednesday of each quarter.
The BFP Octane differential has changed during the previous quarter and therefore the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone with effect from 4 October 2023.
“The Department believes that exploration and development of national oil and gas reserves could help moderate the impact of high prices in the long term,” the department explained.
Here is a look at the estimated petrol price changes expected on Wednesday, 4 October 2023.
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.
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R25.58 | +R1.08 |
Petrol 93 | R25.28 | +R1.14 |
Diesel 0.05% | R25.26 | +R1.96 |
Diesel 0.005% | R24.94 | +R1.93 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R24.93 | +R1.08 |
Petrol 93 | R24.63 | +R1.14 |
Diesel 0.05% | R24.62 | +R1.96 |
Diesel 0.005% | R24.31 | +R19.3 |
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.