The Minister of Mineral and Petroleum Resources (DMRE) has announced the adjustment of fuel prices based on current local and international factors with effect from the 1st of January 2025.
Based on current local and international factors, the fuel prices for January 2025 will be adjusted as follows:
- Petrol 93 (ULP & LRP): Nineteen cents per litre (19.00 c/l) increase.
- Petrol 95 (ULP & LRP): Twelve cents per litre (12.00 c/l) increase.
- Diesel (0.05% sulphur): Seven point five cents per litre (7.50 c/l) increase.
- Diesel (0.005% sulphur): Ten point five cents per litre (10.50 c/l) increase.
- Illuminating Paraffin (wholesale): Nine point five cents per litre (9.50 c/l) decrease.
- SMNRP for IP: Thirteen cents per litre (13.00 c/l) decrease.
- Maximum LPGas Retail Price: Thirteen cents per kilogram (13.00 c/kg) increase.
The fuel prices schedule for the different zones will be published on Tuesday, the 31st of December 2024 by the department.
South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that the country imports both crude oil and finished products at a price set at the international level, including importation costs.
According to the department, main reasons for the fuel price adjustments include crude oil prices, international petroleum product prices, Rand/US dollar exchange rate and the implementation of the Slate Levy.
DMRE reason for fuel price increases
Crude Oil Prices
The average Brent Crude oil price increased slightly from 72.70 US Dollars (USD) to 72.78 USD during the period under review. The main contributing factors are the OPEC+ decision not to increase production in December and continued oversupply by non-OPEC producers amid low economic growth globally.
International petroleum product prices
The average international product prices of Petrol followed the increasing trend of crude oil while the prices of middle distillates decreased slightly because of higher inventories for the winter season in the Northern Hemisphere. These factors led to higher contributions to the Basic Fuel Prices of petrol and diesel by 9.33 c/l and 2.93 c/l respectively and lower contributions to illuminating paraffin by 18.92 c/l.
Rand/US Dollar exchange rate
The Rand depreciated on average, against the US Dollar (from 17.93 to 18.11 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and Illuminating Paraffin by 10.58 c/l, 11.11 c/l and 10.90 c/l respectively.
Implementation of the Slate Levy
The cumulative slate amounted to a positive balance of R4.303 billion for petrol and diesel at the end of November 2024. In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 1st of January 2025.
Octane differentials between 95 and 93 petrol grades
In line with the Working Rules to determine the Basic Fuels Prices (BFP), the differential between 95 and 93 octanes is adjusted on the first Wednesday of each quarter. The BFP Octane differential has changed during the previous quarter and therefore the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone with effect from the 1st of January 2025.
Restoration of the Magisterial District Zones (MDZ) due to the Reopening of the Port of Port Elizabeth
The Repair work at the Port of Port Elizabeth (PE) is complete and the port is now operational. The temporary closure of the port has necessitated interim changes to the MDZ since October 2024. The Department will revert to the original Magisterial District Zones (MDZs) of all the affected fuel pricing zones, with effect from 1 January 2025.
