South Africans will face higher fuel costs starting Wednesday, 4 December 2024, as announced by the Department of Mineral Resources and Energy.
Story Summary:
- Petrol prices will increase by 17 cents per litre, with 95 ULP costing approximately R21.47 per litre in Gauteng from 4 December 2024.
- Diesel prices will rise significantly, with 0.05% sulphur diesel increasing by 55 cents per litre and 0.005% sulphur diesel by 56 cents per litre.
- Illuminating paraffin wholesale and retail prices will increase by 49 cents and 66 cents per litre, impacting households relying on it for heating.
Fuel prices in South Africa: Official adjustments from Wednesday, 4 December 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.
All major fuel types will see price increases due to factors such as higher international oil prices and a weaker rand.
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- Petrol 95 ULP and 93 ULP will increase by R0.17 per litre.
- Diesel 0.05% sulphur will rise by R0.55 per litre, while Diesel 0.005% sulphur will increase by R0.56 per litre.
- Illuminating paraffin wholesale price will increase by R0.49 per litre, with the retail price rising by R0.66 per litre.
For motorists, the increase means that the price of Petrol 95 ULP in Gauteng will rise to approximately R21.47 per litre, up from R21.30.
Diesel prices, critical for transport and logistics, will see sharper hikes, which could impact the cost of goods and services.
Households relying on illuminating paraffin for cooking and heating will also face higher costs, with the retail price reaching R17.02 per litre.
Inland
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R21.47 | +R0.17 |
| Petrol 93 | R21.15 | +R0.17 |
| Diesel 0.05%* | R19.21 | +R0.55 |
| Diesel 0.005%* | R19.33 | +R0.56 |
Coastal
| TYPE | PRICE (p/l) | CHANGE |
| Petrol 95 | R20.68 | +R0.17 |
| Petrol 93 | R20.36 | +R0.17 |
| Diesel 0.05%* | R18.42 | +R0.55 |
| Diesel 0.005%* | R18.57 | +R0.56 |
Factors impacting fuel prices in December 2024
Several factors contributed to the fuel price increases in December 2024.
- Higher international oil prices: Brent crude oil has been trading at around $75 per barrel, driven by geopolitical concerns and tight global supply due to OPEC+ production cuts. These higher costs have raised import prices for fuel.
- A weaker rand: The average Rand/Dollar exchange rate for November 2024 was R17.93, compared to R17.53 in the previous month. A weaker Rand increases the cost of importing fuel into South Africa.
- Local adjustments: Adjustments to the regulatory margins, including wholesale and retail margins, also added to the price changes.
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.
