Bad news about petrol prices in South Africa

Minister of Mineral and Petroleum Resources, Gwede Mantashe, said that there are no plans to intervene to lower petrol and diesel prices.

He shared this information in response to a Parliamentary question about the rise in fuel prices in South Africa.

The Central Energy Fund’s (CEF’s) latest data shows that petrol prices are expected to increase by between R2.38 and R2.52 per litre next month.

Diesel prices, in turn, are on track to increase by between R2.24 and R2.61 per litre, which will push them to record highs.

These increases are a result of higher oil prices, currency volatility, constrained global refining capacity, and the ongoing conflict in the Middle East.

In response to these developments, National Assembly member Adil Nchabeleng asked Mantashe what measures his department has implemented to cushion the blow.

He also asked whether the Department of Mineral and Petroleum Resources will review the fuel price structure, including the slate levy and other fuel-related charges.

Mantashe responded, saying there are no interventions planned due in part to the ongoing volatility in petroleum product prices.

“The Department continues to administer fuel prices in a transparent manner as prescribed by legislation,” Mantashe said.

“We are undertaking the review of the regulatory accounting system, which will bring about equitable, fair and transparent margins across the fuel value chain.”

He added that the Department has already reviewed the Basic Fuel Price (BFP) component of the price structure.

This review forms part of the Department’s Annual Performance Plan (APP) and will be concluded in March 2027.

“Changes proposed in the slate levy administration are meant to ensure an ongoing supply of fuel in the country for the duration of the current conflict in the Middle East,” he said.