South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.
The main reasons for the fuel price adjustments are due to:
The Rand weakened, on average, against the US Dollar (from 16.82 to 17.28 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin of about 14.99 c/l, 15.12 c/l and 13.42 c/l respectively.
During the current fuel price review, the average Brent Crude oil price increased slightly from 43.49 USD/barrel to 44.78 USD/barrel. This was mainly due to concerns that the hurricanes may lead to closure of some of the production facilities in the South Coast of the United States of America.
On the finished products, the movement in international prices of all refined petroleum products decreased resulting in average over recoveries of over of 18.38 c/l on petrol and 35.33 c/l on diesel and 39.17 c/l on Illuminating Paraffin.
The Minister has approved an increase of 5.3 cents per litre in the retail margin of all grades of petrol to accommodate the annual wages increases of the forecourt staff in line with the MIBCO Agreement that was signed on the 13th of December 2019.
Based on current local and international factors, the fuel prices for September 2020 will be adjusted as follows:
The fuel prices schedule for the different zones was published on Tuesday, the 1st of September 2020.