As South African motorists prepare for a significant diesel price hike in April, the Fuels Industry Association of South Africa clarifies that diesel prices at the pump are unregulated. .
Image: File Tumi Pakkies / Independent Newspapers
The Fuels Industry Association of South Africa (FIASA) has provided clarity on why diesel prices at the pump can differ at fuel stations, as South African motorists brace for a massive fuel price adjustment in April.
The clarification comes amid growing concern over record-high fuel costs, exacerbated by the ongoing conflict in the Middle East. A huge diesel price hike is expected in April. The latest data from the Central Energy Fund is pointing to petrol price increases of up to R5.41 next month, with diesel increasing by up to R9.06.
Earlier this week at least two Durban fuel stations came under scrutiny for selling diesel for approximately R29.85 leading to questions from consumers.
While the wholesale price of 50ppm diesel is published by the Department of Mineral and Petroleum Resources (currently listed at R17.84 at the coast, and R18.60 in the inland regions), FIASA highlighted a key distinction in South Africa's energy policy, noting that prices of diesel are not subject to government regulation at the pump.
This stands in contrast to petrol prices, which are strictly regulated by the Minister of Mineral and Petroleum Resources.
According to FIASA, the cost of diesel at the pump is determined by individual suppliers who set their rates based on prevailing market conditions. These conditions include international product prices and various supply dynamics that have become increasingly volatile due to the global energy crisis.
The industry explained that because of these market factors, diesel prices are not uniform across the country. Instead, costs may vary significantly between different wholesalers and specific retail sites. This regulatory framework allows retailers to adjust their own margins, leading to the price gaps often seen between competing service stations.
As a result of these variations, the industry is advising motorists to be more selective about where they refuel to mitigate the impact of the upcoming price hikes. “Consumers are therefore encouraged to shop around for the most competitive diesel prices available in their area,” FIASA said.
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