Motorists across South Africa will have to steel themselves for a huge shock as the petrol price goes up with 67 cents per litre tomorrow.
This increase will have a ricochet effect on so many parts of the economy and will create additional strain on household budgets, reducing disposable income available for other expenses.
South African consumers will be provided with some relief in the prices of diesel, illuminating paraffin, and LP Gas but are, unfortunately, set to face another hike in fuel prices, marking this the third consecutive month of hikes.
The retail price of 93 octane petrol for inland regions like Bloemfontein will increase by 65 cents per litre, and the coastal increase will be 58 cents per litre.
For 95 petrol the inland price increases by 67 cents per litre and the coastal increase is 60 cents per litre in the retail price.
For 500ppm diesel the inland wholesale price increase is 3.22 cents per litre, and the coastal decrease is 3.78 cents per litre.
The wholesale price for inland 50ppm diesel decreases with 1.78 cents per litre, and the coastal decrease is 8.78 cents per litre.
The wholesale price of illuminating paraffin will decrease by 29 cents per litre, with a coastal decrease of 35.7 cents per litre.
Liquified petroleum gas (LPG) wil decrease by 19 cents per kg.
Lebo Ramolahloane, vice-chairman of the South African Petroleum Retailers Association (Sapra), representing the interest of numerous petroleum retailers in South Africa and an 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 different magisterial district zones in the review period.
“As a result of the different transport tariff adjustments to be implemented on 3 April, price changes to similar products will differ in the 54 magisterial district pricing zones,” Ramolahloane says.
“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, a motorist is accustomed to always fuelling up with R500 of 95 octane fuel 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 does not 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.
