New Year Fuel Price Hike: Petrol and Diesel Costs Set to Rise

The Department of Mineral and Petroleum Resources (DMPR) announced the price adjustments, which include increases in LP Gas and decreases in paraffin costs.

South African motorists returning from holiday will face higher fuel costs as petrol and diesel prices are set to increase starting Wednesday, January 1, 2025. The Department of Mineral and Petroleum Resources (DMPR) announced the price adjustments, which include increases in LP Gas and decreases in paraffin costs.

The DMPR provided detailed changes for fuel, paraffin, and gas prices:

Petrol 93 (ULP & LRP): Increase by 19c per litre.

Petrol 95 (ULP & LRP): Increase by 12c per litre.

Diesel (0.05% sulphur): Increase by 7c per litre.

Diesel (0.005% sulphur): Increase by 10c per litre.

Illuminating paraffin (wholesale): Decrease by 9c per litre.

Retail paraffin (single maximum price): Decrease by 13c per litre.

Maximum LPGas retail price: Increase by 13c per kilogram.

Impact on Consumers

In Gauteng, the price of 95 ULP petrol will rise from R21.47 per litre to R21.59, while coastal regions will see an increase from R20.68 to R20.80 per litre. Diesel and LP Gas prices will also follow the upward trend, adding pressure to household and transport budgets.

However, the cost of paraffin has decreased, offering some relief to low-income households reliant on this fuel for heating and cooking.

Global and Local Economic Factors

The DMPR cited several reasons for the adjustments:

1. Brent Crude Oil Price: The average price increased marginally from US$72.70 to US$72.78 due to OPEC+ maintaining production cuts and oversupply by non-OPEC producers.
2. Seasonal Trends: International petrol prices rose, driven by crude oil increases, while middle distillate prices (diesel and paraffin) declined due to higher inventories in the Northern Hemisphere winter season.
3. Rand Depreciation: The Rand weakened against the US Dollar, moving from an average of 17.93 to 18.11 per USD, increasing the basic fuel price contribution for petrol (10.58 c/l), diesel (11.11 c/l), and paraffin (10.90 c/l).

Consumer Impact and Travel Advisory

The increase in fuel costs will impact the transport and logistics sectors, potentially leading to higher prices for goods and services. Holidaymakers are advised to budget for the higher costs as they return home, and public transport operators may need to adjust fares.

To mitigate rising costs, motorists are encouraged to adopt fuel-efficient driving habits, plan trips carefully, and use loyalty programs or apps to locate lower-priced fuel stations.

Looking Ahead

The DMPR continues to monitor international and domestic economic conditions influencing fuel pricing. While the current adjustments reflect global supply and demand trends, the government remains committed to exploring measures to alleviate the burden on consumers amid fluctuating energy prices.