Motorists are expected to dig deeper into their pockets after yet another fuel increase was announced, marking it the third-consecutive month of hikes.
While there are several factors influencing the hike, Lebo Ramolahloane, the vice chairperson of the South African Petroleum Retailers Association, says the Department of Mineral Resources and Energy’s adjustments to the various magisterial district zones during the review period were primarily responsible for the increases.
Ramolahloane, who is also a proud member of the Retail Motor Industry Organisation, which represents the interests of many South African petroleum retailers, says the changes underscore the difficulties consumers face.
He says the growing cost of fuel has a knock-on effect on numerous sectors of the economy.
Here’s what motorists need to know:
• The retail price of petrol 93 has gone up by 65 cents a litre inland and by 58 cents at the coast.
• The retail price of petrol 95 has increased by 67 cents litre inland and by 60 cents at the coast.
• The wholesale price of diesel 500 ppm has gone up by 3.22 cents a litre inland and decreased by 3.78 at the coast.
• The wholesale price of diesel 50 ppm has decreased of 1.78 cents a litre inland and by 8.78 cents at the coast.
• The wholesale price of illuminating paraffin has decreased by 29 cents a litre inland and by 35.7 cents at the coast.
• The price of LP gas has decreased by 19 cents a kilogramme.
“As a result of the different transport tariff adjustments … implemented on April 3, 2024, price changes for similar products will differ in the 54 Magisterial District Pricing Zones.”
He says the adjustments create an additional strain on household budgets, reducing disposable income available for other expenses.
From a business perspective, higher fuel prices can affect profit margins by driving up operating costs for companies, especially those that deal in fuel and depend on transportation.
“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 cash flow strain to the business.
“Most motorists also do not adjust their fuel expenditure according to the extra litres a fuel increase comes with. If, for example, a motorist is accustomed to always filling up with R500 of 95 oz, which, in March, was roughly 20 litres, with the new increased prices, the motorist would have to pay an extra R2 to maintain 20 litres of fuel dispensed, which does not usually happen, hence the drop in sales volumes for the business and overall profits for the month.
“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,” says Ramolahloane.
The Star