As of Wednesday 3 April, South African consumers will be provided with some relief in the prices of diesel, illuminating paraffin, and LP Gas, but unfortunately are set to face another increase in fuel prices, marking this the third consecutive month of hikes.
Here’s what motorists need to know:
• Petrol 93: Inland Increase of 65 cents per litre and Costal Increase of 58 cents per litre in the retail price.
• Petrol 95: Inland Increase of 67 cents per litre and Costal Increase of 60 cents per litre in the retail price.
• Diesel 500ppm: Inland Increase of 3.22 cents per litre and Costal Decrease of 3.78 cents per litre in the wholesale price.
• Diesel 50ppm: Inland Decrease of 1.78 cents per litre and Coastal Decrease of 8.78 cents per litre in the wholesale price.
• Illuminating Paraffin: Inland Decrease of 29 cents per litre and Coastal decrease of 35.7 cents per litre in the wholesale price.
• LP Gas: Decrease of 19 cents per kilogram
Lebo Ramolahloane, Vice Chairman of the South African Petroleum Retailers Association (SAPRA), representing the interest of numerous petroleum retailers in South Africa and a proud association of the Retail Motor Industry Organisation (RMI), says these adjustments highlight the continued challenges faced by consumers.
He says there are various factors influencing the hike but the increases are mostly due to the adjustments by the Department of Mineral Resources and Energy in terms of the differential magisterial district zones in the review period. “As a result of the different transport tariff adjustments to be implemented on 03 April 2024, price changes to similar products will differ in the 54 Magisterial District Pricing Zones,” he explains.
Ramolahloane says rising petrol prices have a ricochet affect on so many parts of the economy. They create additional strain on household budgets, reducing disposable income available for other expenses. “On the commercial side, increased fuel costs can also raise operational expenses for businesses, particularly those reliant on transportation and those trading in fuel, which will impact profit margins.
Fuel Retail outlets are also not exempt. “The cost of stock plays a huge role for a service station. Fuel is primarily paid for upfront by retailers and an increase of however many cents per litre always translates into the cost of a tanker increasing and adding more cashflow strain on the business,” he says.
“Most motorists also do not adjust their fuel expenditure according to the extra litres a fuel increase comes with. If for example if a motorist is accustomed to always fuelling up with R500 of 95 Octane which in March was roughly 20 litres, with a new increased prices the motorist would have to pay an extra R2 to maintain 20 Litres of fuel dispensed, which doesn’t usually happen, hence the drop in sales volumes for the business and overall profits for the month,” says Ramolahloane.
“We will be watching the markets carefully, appreciating how fuel price trends impact both individual households and the broader South African economy, influencing spending habits, inflation rates, trade dynamics, and economic growth prospects,” he concludes.