South Africans to pay R63 less per tank of petrol

 ·30 Jun 2024

The expected petrol price adjustments in July mean that, on average, South Africans will pay over R60 less to fill up their cars or bakkies.

Data from the Central Energy Fund (CEF) shows that petrol prices showed an over-recovery of between R1.01 and R1.07 per litre at the end of the month.

The government regulates the petrol price in South Africa, which is adjusted every first Wednesday of the month.

The calculation of petrol, diesel, and illuminating paraffin prices is done daily by the Central Energy Fund (CEF) on behalf of the Department of Mineral Resources and Energy (DMRE).

The monthly price change which is made is essentially an average over a prior period applied to the future month. 

This means that South Africa’s fuel prices lag international prices by one month, based on whether the previous month saw an over- or under-recovery.

The price people pay for petrol at the pump is determined by numerous elements, which can be divided into international and domestic elements. 

The international element is based on the cost of an importer buying petrol from an international refinery and transporting it to South Africa. 

Various government-regulated taxes, levies, and margins are then added to this cost to arrive at a retail price for petrol.

Most government-regulated taxes, levies, and margins stay stable. This means that the international component is the main driver of petrol price fluctuations.

The rand strengthened slightly in June compared to the average for May due to optimism about the Government of National Unity (GNU).

South African assets have rallied in recent weeks, with investors pumping money into the country and boosting the value of its currency.

Although the rand had significant swings based on the GNU news flow, it remained slightly lower in June than the previous month.

Global oil prices have also declined due to subdued demand in developed economies, as economic growth is slowed by high interest rates.

Based on the latest data, the price of Petrol 93 is expected to decline by R1.05 per litre in July, and the price of Petrol 95 by 99 cents per litre. The official announcement is set to be made before Wednesday.

How much motorists will save per tank of petrol

It raises the question of how much South African motorists will, on average, save on a tank of petrol from July.

To find the value, it is important to calculate the average petrol tank size for cars and pickup trucks in South Africa.

For this calculation, BusinessTech used the most popular cars in South Africa based on unit sales in 2024.

We then calculated the weighted average size of the petrol tanks for these top-selling vehicles.

The petrol tank sizes range from 37 litres for the Suzuki Swift and Toyota Starlet to 80 litres for the Toyota Hilux and Ford Ranger.

The weighted average revealed that the average petrol tank size for the top-selling vehicles in South Africa is 60.4 litres.

This means the typical South African motorist will save R63.42 if they fill up their vehicle with Petrol 93. The savings drop to R59.80 for Petrol 95.

It should be noted that these savings are based on estimates from the Central Energy Fund (CEF). The official petrol price for July will be announced in the coming days.

The table below shows how much owners of the most popular cars in South Africa can expect to save in July when they fill up with Petrol 93.

CarTank Size (l)Saving
Toyota Hilux80R84.00
Ford Ranger80R84.00
Toyota Corolla Cross47R49.35
VW Polo Vivo45R47.25
Isuzu D-Max76R79.80
Suzuki Swift37R38.85
Toyota Starlet37R38.85
Hyundai Grand i1060R63.00
Nissan NP20050R52.50
Toyota HiAce70R73.50

Read: R1.00 per litre petrol price joy lined up for next week

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