On Monday, the Department of Energy confirmed petrol prices for 93 and 95 Unleaded, as well as diesel, will increase from Wednesday, 6 September 2023.
Petrol prices: Here’s how much a litre may cost from Wednesday, 6 September 2023
In a statement, the Energy Department revealed that from Wednesday, 93 and 95 Unleaded petrol is set to increase by R1.71, respectively, while users of 0.05% and 0.005% diesel will experience a third price hike in months ranging between R2.84 and R2.76 per litre.
The department confirmed adjustments in fuel prices for this month were due to:
- increased average international product prices for petrol, diesel and illuminating paraffin during the period under review;
- the depreciation of the South African Rand against the US dollar, on average, when compared to the previous period (The average Rand/US Dollar exchange rate for the period 28 July 2023 to 31 August 2023 was 18.6731 compared to 18.2801 during the previous period);
- the higher contribution to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 29.60 c/l, 31.33 c/l and 31.58 c/l respectively; and, among others,
- the retail margin increase of 5.0 c/l in the retail price structures of all octane grades of petrol with effect from Wednesday, 6 September 2023;
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs,” the department explained.
Here is a look at the estimated petrol price changes expected on Wednesday, 6 September 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 | R24.50 | +R1.71 |
Petrol 93 | R24.14 | +R1.71 |
Diesel 0.05% | R23.30 | +R2.84 |
Diesel 0.005% | R23.01 | +R2.76 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R23.85 | +R1.71 |
Petrol 93 | R23.49 | +R1.71 |
Diesel 0.05% | R22.66 | +R2.84 |
Diesel 0.005% | R22.38 | +R2.76 |
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.