Petrol prices are set for an adjustment this Wednesday, reflecting several influencing factors.
Petrol prices: Here’s how much a litre may cost from Wednesday, 6 March 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.
The Department of Mineral Resources has announced an increase in petrol prices effective from Wednesday, 6 March 2024.
As we predicted in our monthly petrol price forecast, the adjustments see petrol (93 ULP and LRP) and petrol (95 ULP and LRP) increasing by R1.21 per litre. Diesel variants are also affected, with a recommended R1.05 cents per litre increase for 0.05% sulphur and R1.18 per litre for 0.005% sulphur.
Additionally, the wholesale price for illuminating paraffin will rise by 64 cents per litre, with the SMNRP for IP and the maximum LPGas retail price experiencing increases of 85 cents per litre and 41 cents per kilogram, respectively.
Here is a look at the estimated petrol price changes expected on Wednesday, 6 March 2024:
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R24.45 | +R1.21 |
Petrol 93 | R24.13 | +R1.21 |
Diesel 0.05%* | R22.42 | +R1.05 |
Diesel 0.005%* | R22.61 | +R1.18 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R23.73 | +R1.21 |
Petrol 93 | R23.41 | +R1.21 |
Diesel 0.05%* | R21.69 | +R1.05 |
Diesel 0.005%* | R21.92 | +R1.18 |
Factors impacting petrol prices in March 2024
Several key factors have contributed to the fuel price adjustments for March 2024. Firstly, the average Brent Crude oil price has seen a slight increase, influenced by OPEC+ oil production cuts and extreme weather conditions in North America, alongside geopolitical tensions in the Red Sea that have escalated shipping costs.
The average international product prices of petrol, diesel, and illuminating paraffin have risen in response to these higher crude oil prices, with LPG prices also increasing due to higher freight costs and a weaker rand against the US dollar.
The dand’s depreciation against the US Dollar has further contributed to the increase in Basic Fuel Prices for petrol, diesel, and illuminating paraffin.
Additional adjustments include the implementation of a zero cents per litre slate levy on petrol and diesel, changes in transport tariffs due to the decommissioning of the Kroonstad pipeline, and a temporary increase in the IP Tracer Dye Levy for Diesel.
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.
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.