The Department of Mineral and Petroleum Resources has announced that fuel prices in South Africa will increase effective Wednesday, 01 January 2025. This adjustment, attributed to fluctuations in international oil prices and the depreciation of the Rand, will affect both petrol and diesel prices, while illuminating paraffin prices will see a slight decrease.
Fuel price adjustments (Gauteng)
The following changes will apply:
| Product | Change | New Price (cents per litre) |
|---|---|---|
| Petrol 93 (ULP & LRP) | +19.00 cents/litre | 2,159.00 |
| Petrol 95 (ULP & LRP) | +12.00 cents/litre | 2,134.00 |
| Diesel 0.05% Sulphur | +7.50 cents/litre | 1,928.55 |
| Diesel 0.005% Sulphur | +10.50 cents/litre | 1,942.95 |
| Illuminating Paraffin (Wholesale) | -9.50 cents/litre | 1,326.32 |
| Illuminating Paraffin (SMNRP) | -13.00 cents/litre | 1,689.00 |
| Liquefied Petroleum Gas (LPGAS) | +13.00 cents/kg | 805.20 (excluding VAT) |
Factors influencing the price hike
- International Market Trends: The average price of petrol on the global market increased, while diesel and illuminating paraffin prices dropped slightly during the review period (29 November – 26 December 2024).
- Currency Depreciation: The Rand depreciated against the US Dollar, with the average exchange rate dropping to R18.1120 from R17.9256 in the previous review period. This contributed to higher Basic Fuel Prices (BFP).
- Refinement and Storage Costs: Adjustments were made to address variations in wholesale and retail margins.
Magisterial district zones adjustment
With the Port of Port Elizabeth fully operational again, the Department has reverted to the original Magisterial District Zones (MDZ) as previously structured before the temporary closure in October 2024.
Octane differential
No changes were made to the Basic Fuel Price differentials between 93 and 95 octane petrol grades, as there was no variance in costs during the review period.
Implications for consumers
While the fuel price hikes will increase costs for motorists, the slight reduction in illuminating paraffin prices provides some relief to households reliant on it for heating and lighting. However, the cumulative effect of these adjustments may exert upward pressure on transport costs and goods prices, impacting consumers across the board.
A policy statement by President Cyril Ramaphosa has today resulted in the formation of a new state-owned petroleum company, the South African National Petroleum Company (SANPC).
The SANPC has been formed following the merger of the Central Energy Fund (CEF) subsidiaries, iGas, PetroSA and the Strategic Fuel Fund.
The SANPC is poised to become a leading player in the country’s energy sector ensuring energy security, driving new technologies, developing and enabling essential infrastructure, fostering strategic partnerships and propelling social and economic development.
It is also expected to oversee strategic planning, coordination and governance of the country’s petroleum resources, contributing to the country’s development and economic growth.
The company has been granted approval to start operating in terms of the s51(g) (h) of the Public Finance Management Act of 1999.
