Motorists and households across South Africa will see mixed changes at fuel pumps and retailers this Wednesday, following the latest monthly price declaration by the Department of Petroleum and Mineral Resources (DMPR). While petrol prices climb, significant reductions have been applied to diesel, paraffin, and liquefied petroleum (LP) gas.
The Numbers: What’s Changing This Week
Petrol Prices Rise
- Petrol 93 (Unleaded and Leaded Regular Petrol): +R1.43 per litre
- Petrol 95 (Unleaded and Leaded Regular Petrol): +R1.43 per litre
Diesel and Alternative Fuels Drop
- Diesel (0.05% sulphur content): −R3.24 per litre
- Diesel (0.005% sulphur content): −R2.61 per litre
- Illuminating Paraffin (wholesale tier): −R5.96 per litre
- Illuminating Paraffin (single maximum national retail price): −R7.95 per litre
- LP Gas (maximum retail price): −17 cents per kilogram nationally, with a −20 cents per kilogram reduction specifically in the Western Cape
Behind the Shift: Global Markets and Seasonal Trends
The DMPR cited several interconnected factors driving this month’s adjustments. On the international stage, the average Brent Crude oil price rose from US$101 to US$104.59 during the review period. The department attributed this increase to ongoing geopolitical friction between the United States and Iran, coupled with market concerns about potential disruptions to shipping routes through the Strait of Hormuz.
Despite higher crude benchmarks, middle distillates—namely diesel and paraffin—experienced steeper price declines than petrol. “Lower seasonal demand as the northern hemisphere moves into summer” contributed to this divergence, according to the DMPR’s explanation.
In the LP gas segment, while Propane and Butane commodity prices held steady during the period under review, reduced freight costs helped enable the per-kilogram price reductions passed on to consumers.
Currency Movement and Policy Adjustments Soften the Impact
Local currency performance also played a moderating role. The South African Rand strengthened marginally against the US Dollar, moving from R16.65 to R16.52 per USD. This appreciation translated into slightly lower contributions to the Basic Fuel Price component for key fuels:
- Petrol: −12.07 cents per litre
- Diesel: −14.81 cents per litre
- Illuminating Paraffin: −14.55 cents per litre
Additionally, a policy-driven reduction in the general fuel levy took effect Wednesday:
- Petrol levy reduced by R1.50 per litre
- Diesel levy reduced by R1.96 per litre
Practical Implications
Transport operators and freight companies stand to benefit from the diesel price reduction, potentially easing logistics costs across supply chains. Meanwhile, private vehicle owners using petrol should anticipate the R1.43 per litre increase in their refuelling budgets.
Households dependent on illuminating paraffin—particularly in rural and off-grid areas—will see notable relief given the substantial R7.95 per litre cut at the retail level. LP gas users, including those relying on it for cooking and heating, will also experience modest savings, with slightly deeper reductions applicable in the Western Cape.
The DMPR reminds retailers that all new maximum retail prices must be clearly displayed at points of sale. Consumers are encouraged to verify region-specific pricing through official departmental channels, as local variations may apply.