Fuel prices set to rise: Key adjustments announced for February 2025

In a significant update, the Minister of Mineral and Petroleum Resources has revealed the upcoming changes to fuel prices, which will take effect on February 5, 2025. This adjustment reflects a combination of both local and international market dynamics.

Fuel prices in South Africa are reviewed monthly, with changes driven by factors beyond our shores. As a country that imports crude oil and finished products, fluctuations in international pricing and related import costs, such as shipping, play a critical role.

Here’s what’s contributing to the new fuel price adjustments:

1. Crude Oil Prices Surge

The average price of Brent Crude oil saw an increase from $72.78 to $77.41 during the review period.

This upturn is primarily fueled by rising demand prompted by colder weather in the Northern Hemisphere and anticipated boosts in oil consumption from China due to economic recovery efforts.

Contributing to this scenario is OPEC+’s recent decision to postpone any production increases until April 2025, coupled with fresh sanctions on major players like Russia and Iran, which might further limit supply and drive-up shipping costs.

2. International Product Prices Follow Suit

The international prices of petroleum products have also mirrored the upward trend in crude oil prices. Notably, the cost of Liquefied Petroleum Gas (LPG) has surged due to increasing freight costs amidst the chilly winter conditions in the Northern Hemisphere.

These shifts have directly impacted the Basic Fuel Prices for petrol, diesel, and illuminating paraffin, increasing them by 46.06 c/l, 66.26 c/l, and 58.64 c/l, respectively.

3. Rand weakens against the dollar

Over the review period, the Rand has depreciated against the US Dollar, moving from R18.11 to R18.73 per USD. This depreciation has further added to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 36.85 c/l, 39.58 c/l, and 38.61 c/l, respectively.

4. Slate levy stays steady

As of December 2024, the cumulative slate recorded a positive balance of R4.05 billion for petrol and diesel. In accordance with the Self-Adjusting Slate Levy Mechanism, the slate levy will remain unchanged at zero cents per litre for these fuels starting February 5, 2025.

As a result of these current local and international factors, the fuel prices for February 2025 will see the following increases:

• Petrol 93 (ULP & LRP): Up by 82.00 c/l

• Petrol 95 (ULP & LRP): Up by 82.00 c/l

• Diesel (0.05% sulphur): Up by 105.00 c/l

• Diesel (0.005% sulphur): Up by 101.00 c/l

• Illuminating Paraffin (wholesale): Up by 97.00 c/l

• SMNRP for IP: Up by 129.00 c/l

• Maximum LPGas Retail Price: Up by 42.00 c/kg

Motorists and consumers alike should take note of these changes as they prepare for the new pricing landscape this February. Stay informed to navigate the effects of these adjustments effectively!