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Tuesday, February 11, 2025
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South Africa Rings in 2025 with Fuel Price Increases

The start of 2025 brings adjustments to South Africa’s fuel prices, with increases for Petrol 93, Petrol 95, and diesel. These changes will take effect on 1 January 2025, as announced by the Minister of Mineral and Petroleum Resources.

Fuel Price Adjustments

Increases:
– Petrol 93 (ULP & LRP): 19 cents per litre (c/l)
– Petrol 95: 12.00 c/l
– Diesel (0.05% sulphur): 7.50 c/l
– Diesel (0.005% sulphur): 10.50 c/l
– Maximum LPGas Retail Price: 13.00 c/kg

Decreases:
– Illuminating Paraffin (wholesale): 9.50 c/l
– Single Maximum National Retail Price (SMNRP) for Illuminating Paraffin: 13.00 c/l

South Africa adjusts fuel prices monthly, reflecting both local and international factors.

Key Reasons for Adjustments

1. Crude Oil Prices
– The average Brent Crude oil price increased slightly from $72.70 to $72.78 during the review period.
– Influencing factors include OPEC+ maintaining production levels in December and oversupply from non-OPEC producers amid slow global economic growth.

2. International Petroleum Product Prices
– Petrol prices mirrored the upward trend of crude oil.
– Middle distillates saw a slight decrease due to increased inventories for the winter season in the Northern Hemisphere.
– Contributions to the Basic Fuel Prices (BFP):
– Petrol: +9.33 c/l
– Diesel: +2.93 c/l
– Illuminating Paraffin: -18.92 c/l

3. Rand/US Dollar Exchange Rate
– The rand weakened against the US Dollar, averaging R18.11/USD, up from R17.93/USD in the previous period.
– This depreciation led to higher contributions to the BFP for:
– Petrol: +10.58 c/l
– Diesel: +11.11 c/l
– Illuminating Paraffin: +10.90 c/l

4. Implementation of the Slate Levy
– As of November 2024, the cumulative slate balance for petrol and diesel was R4.303 billion.
– The slate levy remains unchanged at zero cents per litre for petrol and diesel.

5. Octane Differentials Between 95 and 93 Petrol Grades
– Octane differentials, adjusted quarterly, have changed, resulting in varied retail prices for 95 and 93 octanes across fuel-pricing zones starting 1 January 2025.

6. Restoration of Magisterial District Zones (MDZ)
– Repairs at the Port of Port Elizabeth are complete, restoring normal operations.
– Interim MDZ adjustments, implemented during the port’s closure in October 2024, will revert to their original structure as of 1 January 2025.

Upcoming Fuel Price Schedule
The revised fuel price schedule for all zones will be published on 31 December 2024.

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