From Wednesday, 7 February 2024, filling up your tank will demand more from your wallet, with petrol prices seeing a considerable hike across the board.
Petrol prices: Here’s how much a litre may cost from Wednesday, 7 February 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 details are in, and they’re sure to make your engine sputter. Both grades of petrol, 93 and 95 (ULP & LRP), diesel (0.05% and 0.005% sulphur), and even illuminating paraffin are set to see an uptick.
The increases are substantial, with both grades of petrol climbing by 75c per litre, while diesel 0.055 and 0.005% will rise by 73c and 70c, respectively.
These adjustments translate to a significant bump in the cost per litre, pushing motorists to dig deeper into their pockets.
Here is a look at the estimated petrol price changes expected on Wednesday, 7 February 2024:
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R23.24 | +R0.75 |
Petrol 93 | R22.92 | +R0.75 |
Diesel 0.05%* | R21.37 | +R0.73 |
Diesel 0.005%* | R21.43 | +R0.70 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R22.52 | +R0.75 |
Petrol 93 | R22.20 | +R0.75 |
Diesel 0.05%* | R20.64 | +R0.73 |
Diesel 0.005%* | R20.74 | +R0.70 |
Factors impacting petrol prices in January 2024
The hike can be attributed to a cocktail of economic factors, including the average international product prices for petrol, and diesel, and illuminating paraffin ticking upwards.
Additionally, the rand’s depreciation against the US dollar adds more fuel to the fire, contributing to the increase. The exchange rate’s impact is notable, making imported oil more expensive and driving up local fuel prices.
With the Basic Fuel Prices of petrol, diesel, and illuminating paraffin affected, it’s clear that global market dynamics and local currency fluctuations are to blame.
Fuel-saving tips to cushion the blow
In light of the price surge, adopting fuel-saving habits can offer some respite. Consider carpooling to share travel costs, keeping your vehicle well-maintained to ensure fuel efficiency, and planning your routes to avoid congestion and reduce idle times.
Additionally, moderating your speed and avoiding aggressive driving can significantly lower fuel consumption, keeping your fuel expenses in check despite the price hike.
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.