The Minister of Mineral Resources and Energy, Gwede Mantashe, has approved an increase of 5.3c/l to the fuel retail margin, from 285.70c/l to 291.00c/l, which will take effect on 4 September 2024.
This is necessary to accommodate wage increases for service station employees such as cashiers and forecourt attendants, as negotiated by the Motor Industry Bargaining Council.
From 1 September onwards, these workers will earn the following wages:
| Employee | Hourly wages | Weekly wages |
|---|---|---|
| Cashier | R43.15 | R1,941.75 |
| Forecourt attendant | R43.61 | R1,962.45 |
What to expect
Despite the margin increase, motorists can look forward to lower prices at the pumps in September courtesy of a drop in average international oil prices and the continued strength of the local currency.
In July, Brent Crude oil traded between a low of $76.81/barrel and a high of $87.43/barrel. The average rates of the black gold fell during the first weeks of August, being rangebound between $76.05/barrel and $82.30/barrel.
The marginal improvement led to an over-recovery in domestic fuel costs of between 71-85c/litre for petrol and 64-90c/litre for diesel, as per mid-month fuel price data published by the Central Energy Fund (CEF).
Over the same period, the rand/US dollar exchange rate appreciated from an average of around R18.20/dollar to R18.11/dollar, slashing a further 6-7c/litre from petrol and diesel prices.
Based on these input elements, the CEF expects the following adjustments to take effect in September:
- Petrol 93 – Decrease of 82c a litre
- Petrol 95 – Decrease of 88c a litre
- Diesel 0.05% – Decrease of 71c a litre
- Diesel 0.005% – Decrease of 97c a litre
However, accounting for the margin adjustments, petrol could see a less substantial reduction of 77c per litre for 93 unleaded and 83c per litre for 95 unleaded, whereas diesel 0.05% could fall by 66c per litre and diesel 0.05% by 92c per litre.
It should be noted that these are not the official changes that will be made by the Department of Mineral Resources and Energy in September, which may be higher or lower as they also take into account any potential changes in taxes and levies as well as transport and distribution costs.
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