The Minister of Mineral and Petroleum Resources has confirmed fuel price changes, effective from January 1, 2025. The adjustments are based on both local and international factors affecting fuel prices.
Price Increases:
Petrol 93 (ULP & LRP): 19 cents per litre increase
Petrol 95: 12 cents per litre increase
Diesel (0.05% sulphur): 7.50 cents per litre increase
Diesel (0.005% sulphur): 10.50 cents per litre increase
Maximum LPGas Retail Price: 13.00 cents per kilogram increase
Price Decreases:
Illuminating Paraffin (wholesale): 9.50 cents per litre decrease
SMNRP for IP: 13.00 cents per litre decrease
Fuel prices in South Africa are adjusted monthly, taking into account both international and local factors.
Key Reasons for the Adjustments:
Crude Oil Prices:
The average price of Brent Crude oil saw a slight increase, from $72.70 to $72.78. This was mainly due to OPEC+ maintaining production levels in December, alongside continued oversupply from non-OPEC producers despite low global economic growth.
International Petroleum Product Prices:
Petrol prices rose along with crude oil prices, while middle distillate prices (such as diesel) decreased slightly due to higher inventories for winter in the Northern Hemisphere. As a result, petrol and diesel saw higher price contributions of 9.33 and 2.93 cents per litre, respectively. Illuminating paraffin, however, had a lower contribution of 18.92 cents per litre.
Rand/US Dollar Exchange Rate:
The rand weakened against the US dollar, from R17.93 to R18.11 per USD, leading to higher costs for petrol, diesel, and illuminating paraffin. These fuels saw price increases of 10.58 cents, 11.11 cents, and 10.90 cents per litre, respectively.
Slate Levy:
As of November 2024, a positive slate balance of R4.303 billion for petrol and diesel was recorded. Despite this, the slate levy remains unchanged at zero cents per litre for both petrol and diesel starting January 1, 2025, in accordance with the Self-Adjusting Slate Levy Mechanism.
Additional Changes:
Octane Differentials for Petrol Grades:
The price differential between 95 and 93 octane petrol grades is adjusted quarterly. This change will affect retail prices in each fuel-pricing zone starting January 1, 2025.
Restoration of Magisterial District Zones:
Following the completion of repairs at the Port of Port Elizabeth, the port is now operational again. The Department will revert to the original Magisterial District Zones for all affected pricing zones starting January 1, 2025, after a temporary adjustment since October 2024.
A detailed fuel price schedule for each zone will be released on December 31, 2024.
Related Topics:
- Russia’s LPG Prices Drop 50% After EU Embargo
- Man Arrested in Ridgecrest for Allegedly Stealing 500 Gallons of Diesel Fuel
- Gasoline Prices Rise Again: Year-End Surge Relieves Car Owners