Confirmed: Fuel Prices Increase from 5 February 2025

South African motorists are in for a rough ride as the Department of Mineral Resources and Energy (DMRE) has announced significant fuel price hikes effective from Wednesday, 5 February 2025. This marks the fourth consecutive month of increases and the second for this year.

Fuel Price Adjustments:

• Petrol (93 & 95 ULP & LRP): Up by 82 cents per litre
• Diesel (0.05% Sulphur): Up by 105 cents per litre
• Diesel (0.005% Sulphur): Up by 101 cents per litre
• Illuminating Paraffin (Wholesale): Up by 97 cents per litre
• LPGAS: Up by 42 cents per kilogram

Factors Driving the Increase:

The DMRE attributes these hikes to a combination of rising international oil prices and a weakening Rand. Between 27 December 2024 and 30 January 2025, the Rand depreciated from R18.11/$ to R18.73/$, leading to higher Basic Fuel Prices (BFP). The average Brent Crude oil price also climbed from $72.78 to $77.41 per barrel during this period.

Key contributors to the rising oil prices include:

• Increased demand due to cold weather in the Northern Hemisphere.
• Anticipated higher demand from China following economic stimulus measures.
• OPEC+’s decision to delay production increases until April 2025.
• New sanctions against Russia and Iran, potentially constraining supply and increasing freight rates.

These factors resulted in higher contributions to the BFP:

• Petrol: +46.06 cents per litre
• Diesel: +66.26 cents per litre
• Illuminating Paraffin: +58.64 cents per litre

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Impact on Consumers:

With these adjustments, fuel prices across the country will see significant increases. For instance, in inland regions:

• 93 Petrol: Rising from R21.34 to R22.16 per litre
• 95 Petrol: From R21.59 to R22.41 per litre
• Diesel 0.05% (wholesale): From R19.29 to R20.34 per litre

Coastal areas will experience similar hikes:

• 93 Petrol: Increasing from R20.55 to R21.37 per litre
• 95 Petrol: From R20.80 to R21.62 per litre
• Diesel 0.05% (wholesale): From R18.50 to R19.55 per litre

These surges are expected to hit consumers hard, especially those in the transport sector. Truckers, in particular, will feel the pinch as operational costs climb, potentially leading to higher prices for goods transported across the country.