The R12 per litre alternative to South Africa’s high petrol prices
Despite recent price cuts, South African motorists still pay over R20 per litre for fuel, and the push for cheaper alternatives is gaining momentum—with a new option combining hybrid technology and LPG fuel emerging as a viable solution.
October 2024 marked the fifth consecutive month of fuel price reductions in South Africa, with petrol prices falling between R1.06 and R1.14 per litre and diesel prices dropping between R1.12 and R1.14 per litre.
While this provided temporary relief for motorists, the outlook ahead remains concerning.
As November approaches, fuel price recoveries have been trending upward, with data from the end of October showing growing under-recoveries, especially for petrol and diesel.
The Central Energy Fund (CEF) data from the third week of October indicated that petrol and diesel prices are under-recovering even more than earlier in the month.
The latest figures show that petrol prices have worsened by about 20 cents per litre, while diesel under-recoveries have increased by around 10 cents per litre.
As a result, petrol price hikes are expected, with estimates indicating an increase of 16 cents per litre for Petrol 93 and 28 cents per litre for Petrol 95.
Diesel prices will likely rise by 21 cents per litre for Diesel 0.05% (wholesale) and 20 cents per litre for Diesel 0.005% (wholesale).
Illuminating paraffin is expected to increase by 16 cents per litre as well.
The rising under-recoveries are primarily driven by higher global fuel prices, a consequence of increased tensions in the Middle East and slower-than-expected interest rate cuts in the United States.
While the South African rand has traded within a relatively stable range against the US dollar throughout October, it hasn’t significantly impacted fuel prices.
Oil prices alone are contributing to a 30-cents-per-litre under-recovery, while the rand/dollar exchange rate is providing some relief, reducing the shortfall by between 13 and 25 cents per litre, depending on the fuel grade.
Alternative
Amid these challenging circumstances, there is growing interest in alternative fuel sources, particularly those that offer savings and environmental benefits.
One of the emerging solutions is the introduction of liquified petroleum gas (LPG) as a fuel for vehicles.
Isinkwe Energies, a KwaZulu-Natal-based company, is leading the charge in this space.
In partnership with Ergon Equipment and Prins Autogas, the company opened South Africa’s first LPG fuel station last year.
Since then, their operations have expanded to Gauteng, with a growing demand for autogas in light of rising petrol prices.
Kyle Hartley, managing director at Isinkwe Energies, highlighted the increasing interest in autogas, which is significantly cheaper than traditional fuels.
In April, the company opened its first LPG fitment centre in Midrand, Gauteng.
Several stations in Gauteng now offer autogas, with two conveniently located at Sasol stations in Kempton Park and Centurion.
Isinkwe Energies plans to open its first dedicated autogas station in Midrand in February 2025 and a second station in Pinetown, KwaZulu-Natal, in May 2025.
LPG fuel prices currently sit at around R12 per litre in Gauteng and R14 per litre along the coast, making it roughly 40% cheaper than petrol, which costs approximately R21 per litre for Petrol 95 in inland areas.
Hartley explained that by switching to a Prins Autogas conversion kit, motorists could nearly halve their fuel expenses.
These conversion kits, which allow vehicles to operate on both petrol and LPG, start at R26,000 (excluding VAT), with installation costs of around R2,950 (excluding VAT).
The kits are not only cost-effective but also environmentally friendly, as LPG systems produce significantly lower emissions compared to petrol-only vehicles.
Hartley also introduced a new advancement in the field—Prins “Tri-brid” technology. This allows hybrid vehicles to run on autogas, providing a solution that combines the benefits of electric, petrol, and LPG technologies.
Hartley noted that this addresses common concerns associated with fully electric vehicles, such as range anxiety and dependence on the national grid for recharging.
For example, a Toyota Corolla Cross Hybrid converted to run on autogas achieves a fuel economy similar to that of the standard hybrid model but with dramatically lower fuel costs, thanks to the affordability of LPG.
At the current inland fuel price of R12 per litre for LPG, the average cost per kilometre driven is approximately 75 cents, and for VAT-registered businesses, this can drop to 65 cents per kilometre.
These savings make autogas a highly attractive alternative for cost-conscious drivers.
As South Africa continues its search for sustainable transportation options, autogas presents itself as a practical and efficient solution.
With its combination of affordability, reduced emissions, and adaptability, it stands out as a greener and more economical alternative to traditional fuels.
While electric vehicles (EVs) remain an important part of the global shift towards cleaner energy, Hartley believes that autogas and EVs will coexist in the South African market.
Although EVs offer zero tailpipe emissions, their adoption in South Africa faces obstacles such as high purchase costs, limited charging infrastructure, and the environmental impact of battery production and disposal.
Though not emissions-free, autogas offers significant reductions in harmful emissions like CO2, NOx, and particulates while delivering fuel cost savings of up to 60%.
Additionally, autogas systems can be fitted to nearly all vehicle makes and models, making them a widely accessible and practical option for South African motorists.
Loading ...
