It’s official! More than R1 drop in petrol and diesel prices in October

The Department of Mineral and Petroleum Resources has published the official fuel price adjustments that will come into effect for petrol and diesel this week.

The good news is that motorists will be able to save around R50 on a tank of petrol come Wednesday, 2 October.

The over-recoveries for both petrol and diesel throughout the month of September were the result of weak global oil prices and a stronger rand.

October fuel prices: Changes in petrol, diesel and paraffin 

• Petrol 93: Decrease of R1.06 cents per litre.
• Petrol 95: Decrease of R1.14 cents per litre.
• Diesel 0.05% (wholesale): Decrease of R1.14 per litre.
• Diesel 0.005% (wholesale): Decrease of R1.12 per litre.
• Illuminating paraffin: Decrease of R1.11 per litre.

This is how the price changes will reflect at the pumps:

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Petrol price knock-on effect: Tanker saga at Port of Port Elizabeth

The fuel price decreases, however, would have been even more substantial if an adjustment of zone differentials did not come into play.

The adjustment was the result of a tanker saga which affected the port of Port Elizabeth.

In June, a tanker carrying LPG gas crashed into a crucial bunker normally used to transfer fuel to tanker trucks for distribution to petrol stations while it was being piloted into the harbour.

According to the Daily Maverick, LFWA CEO, Peter Morgan, explained that with the bunker out of commission, liquid fuels wholesalers had to fetch petrol and diesel from the East London harbour and had already been trucking in 88 million litres of petrol and diesel a month at extra cost, including for extra tankers.

Application to exclude Nelson Mandela Bay from fuel price drop

This prompted the Liquid Fuel Wholesalers Association (LFWA) to approach Mineral and Petroleum Resources Minister, Gwede Mantashe, to temporarily exempt the Nelson Mandela Bay Metro and surrounding areas from lower fuel prices.

Mantashe has approved the implementation of the revised transport tariffs into the petrol, diesel and illuminating paraffin price structures as an interim measure until the port is operational again.

The adjustment to the road transport tariffs applicable to petrol, diesel and illuminated paraffin price structures will range from a decrease of 0.9 c/l in Zone 9A to an increase of 10.5 c/l in Zone 8B.

Fuel price drivers: Rand/dollar and global oil prices

Petrol and diesel price changes are implemented on the first Wednesday of every month and are determined by two factors:

• The rand/US dollar exchange rate, which determines how fuel is purchased.
• Global oil prices, which determine how much fuel costs to purchase.

In September, international petroleum product prices decreased on average, in line with the lower oil prices, during the period under review, according to the department.

“This led to lower contributions to the basic fuel prices of petrol by 91.74 c/l and 85.04 c/l, diesel by 91.37 c/l and 88.72 c/l and illuminating paraffin by 87.64 c/l, respectively.”

The rand appreciated on average, against the US dollar (from R18.05 to R17.68) during the period under review. This led to lower contributions to the basic fuel prices of all products by over 21 cents per litre.

Slate levy

The cumulative slate amounted to a positive balance of R3.84 billion for petrol and diesel of at the end of August 2024.

In line with the provisions of the self-adjusting slate levy mechanism, a slate levy of zero cents per litre remain in the price structures of petrol and diesel with effect from 2 October.

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