South African motorists can expect increases in fuel prices starting Wednesday, 6 November 2024, as announced by the Department of Mineral Resources and Energy.
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.
Here’s how much more a litre will cost for each fuel type.
- Petrol 93 and 95 will increase by 25 cents per litre, bringing the new price in Gauteng to R21.30 for Petrol 95 and R20.98 for Petrol 93.
- Diesel will see a 21-cent increase for 0.05% sulphur and a 20-cent increase for 0.005% sulphur, raising wholesale prices to R18.66 and R17.87 per litre, respectively.
- Illuminating paraffin wholesale price will increase by 21 cents per litre, with a 28-cent rise in the retail price, affecting households that rely on it for heating and lighting.
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R21.30 | +R0.25 |
| Petrol 93 | R20.98 | +R0.25 |
| Diesel 0.05%* | R18.66 | +R0.21 |
| Diesel 0.005%* | R18.77 | +R0.20 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R20.51 | +R0.25 |
| Petrol 93 | R20.19 | +R0.25 |
| Diesel 0.05%* | R17.87 | +R0.21 |
| Diesel 0.005%* | R18.01 | +R0.20 |
Factors impacting petrol prices in November 2024
The rise in fuel prices is mainly due to changes in international oil markets and currency exchange rates.
According to the department, global fuel prices for petrol, diesel, and paraffin increased during the review period, adding pressure to import costs.
However, the South African rand showed some improvement against the US dollar, averaging an exchange rate of R17.53 per dollar compared to R17.67 in the previous period.
This currency gain slightly offset the price increase, helping to lower the final cost adjustment by around 8 cents per litre for all fuel types.
In addition, the Slate Levy remains unchanged at zero, indicating no further charges have been applied to balance past price differences.
These adjustments mean that from 6 November, motorists will pay slightly more for fuel, a change largely influenced by external factors in the global fuel market.
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.
