Unleaded petrol (both 93 and 95) will be increased by 82c a litre. Photograph: David Ritchie/ Independent Newspapers.
International oil prices and a weakened rand contributed to steep fuel hikes in South Africa in February.
The Department of Mineral and Petroleum Resources announced the official price adjustments on Tuesday and will come into effect from Wednesday.
– Unleaded petrol (both 93 and 95) will be increased by 82c a litre.
– The wholesale price of diesel will be hiked by between R1.01 and R1.05 a litre.
– Petrol will cost R22.41 a litre inland, while on the coast, it will retail for R21.62.
– The diesel price will be R20.34 a litre in Gauteng, and R19.55 on the coast.
– The wholesale price of illuminating paraffin will be increased by 96c, while the maximum LPGas retail price will rise by 42.c/kg.
The department said the average price of Brent oil increased from $72.78 (R1380) a barrel to $77.41 over the past month.
"The main contributing factors increased demand due to cold weather in the Northern Hemisphere, an anticipated increase in demand for oil from China following economic stimulation policies. On the other hand, supply was affected by the OPEC+ decision to delay production increases until April 2025 as well as new sanctions against Russia and Iran, which could further constrain supply and result in higher freight rates," the department said.
The local currency weakened, especially after US President Donald Trump took issue with South Africa’s Expropriation Bill.
Economists expect oil prices to remain volatile due to the uncertainty created by Trump’s protectionist policies as well as US sanctions on Russian-produced fuel.
While consumers may have cheered the interest rate cut announced by the South African Reserve Bank recently, possible savings to their monthly budgets could be undone in the coming months with more fuel price increases expected if global economic tensions remain high.
Pain to South Africans wallets will also be felt after the National Energy Regulator of South Africa (Nersa) approved a 12.7% increase in electricity tariffs for the 2025/2026 financial year.
The increases are expected to come into effect in April this year.
Anthony Waldhausen, of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC), said they are opposed to these increases.
Waldhausen added that this way, if Eskom has the funds owing to them, they would not need to increase tariffs, which impact residents negatively. “The tariff increase will impact residents negatively as household goods and food would increase substantially. Residents are in dire financial constraints at the moment and are unable to survive on what income they have.”
According to Henry van der Merwe, the chairman of the South African Petroleum Retailers Association, the impact is a "lose-lose situation" for fuel retailers and consumers alike.
“When the fuel price increases, motorists naturally adapt by driving less and planning trips more carefully, which significantly reduces sales volumes for service stations,” he explains. "Even stations that buy on consignment don't benefit from these changes. It’s a tough environment where station owners often face shrinking margins."
Neil Roets, the CEO of Debt Rescue, said South Africans may have survived Janu-worry but the petrol pain continues.
“2024 was one of toughest years yet for South Africans from all walks of life and this petrol price hike will simply serve to keep South Africans locked into a debt cycle that they have no escape from, while the most vulnerable among us continue to suffer through each month, scraping by on minimum wages or grants that exclude them from providing for their families. Other than transport costs, the cost of groceries is widely expected to be the biggest expense in consumers’ spending over the next year, but this could easily be usurped by the monthly electricity bill, when the Eskom tariff hike of 12.7% kicks in come April,” Roets said.
“January has taken its toll on South Africans, proving to be one of the toughest months yet to get through financially, with the nation heaving a collective sigh of relief as we enter the month of February. Sadly, the pain continues for millions of motorists and commuters,” he further added.
“Food costs are a top concern for South Africans, millions of whom are already teetering on the brink of financial ruin. With prices of basic foodstuffs escalating on a monthly basis and the agricultural sector still under severe pressure due to drought conditions in the latter half of 2024, the nation is now suffering the consequences of the resultant crop failure - a tight grain supply and higher commodity prices. This means that low-income consumers can no longer afford nutritious food for their families, due to the price of the household food basket continuing to increase,” Roets said.
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