These include the wholesale margins, retail margins, secondary storage, and secondary distribution, he said.<\/p>\n\n\n\n
\u201cThat process has started. We have already signed a service level agreement with a service provider and we expect that work to be concluded by March 2027,\u201d Maake revealed.<\/p>\n\n\n\n
In the immediate term, the government has already announced the temporary reduction of the general fuel levy by R3 to cushion consumers.<\/p>\n\n\n\n
\u201cIn the short term, it means that consumers are actually paying R3 less for petrol and diesel at the service stations, which is useful for households and motorists. <\/p>\n\n\n\n
“It is difficult at the moment to say how the government will intervene [in the long term] and what the next step will be,\u201d Maake said.<\/p>\n\n\n\n
Paraffin pricing<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Oil-barrels-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nTurning to the price of paraffin, Maake explained the influences which paved the way for the fuel source to increase by R11.67 for wholesale and some R15.60 for the Single Maximum National Retail Price for Illuminating Paraffin.<\/p>\n\n\n\n
\u201cParaffin is not taxed, so the relief measure was to reduce the fuel levy, and there\u2019s no fuel levy on paraffin. <\/p>\n\n\n\n
“It is already zero-rated, so the same cannot be applied to paraffin. We need a different mechanism for paraffin,” he said.<\/p>\n\n\n\n
\u201cThe reason why paraffin has almost doubled in price is that, from a refinery production point of view, paraffin and jet fuel, when they come from the refinery, are known as dual-purpose kerosene, so it depends on the final use at the end of the day.<\/p>\n\n\n\n
\u201cThe challenge we had was that there was a demand for air travel last month globally, particularly in Europe, where they were coming from their winter season to\u2026where they wanted to travel.<\/p>\n\n\n\n
\u201cUnfortunately, because of the winter, some of the major refineries had closed down due to the very cold winter season, where they could not operate. So there was a shortage of jet fuel, and as a result, both the price of jet fuel and paraffin shot up,\u201d Maake explained.<\/p>\n\n\n\n
He added that despite these factors, the department is having \u201csleepless nights\u201d on how to bring relief to consumers of paraffin.<\/p>\n\n\n\n
\u201cWe are looking at what other mechanisms we can propose. The first one of zero rating is fine because there are no taxes on paraffin, but what is the next one? Maybe we can look at the indigent framework where paraffin users register and get direct support from the government?<\/p>\n\n\n\n
\u201c[Also] the bulk of paraffin is used in mixing with diesel by some businesspeople. So, it\u2019s very important that whatever form of support the government comes up with is targeted to the beneficiaries,\u201d he said.<\/p>\n\n\n\n
Stable supply<\/h2>\n\n\n\n
Ahead of last week’s fuel price increase, there were reports of fuel shortages at some service stations.<\/p>\n\n\n\n
\u201cWhat we have seen\u2026is something that we have never seen before. Particularly the magnitude of the fuel price increase,” he said.<\/p>\n\n\n\n
“So what likely happened is that some of the commercial customers were trying to buy in bulk in anticipation of the high fuel prices. So, they were placing additional orders on top of the orders they had with the suppliers.<\/p>\n\n\n\n
\u201cBut also, there were complaints that some service stations were running out of fuel, and people were thinking that they were hoarding fuel until the new price kicks in. That was a big challenge for us.<\/p>\n\n\n\n
\u201cHowever, we just came from the long weekend and from the reports that we are getting, there were not a lot of reports from provinces that they were running out of fuel,\u201d he said.\u00a0<\/p>\n\n\n\n
Maake reiterated assurances that supply to South Africa remains stable despite reports to the contrary.<\/p>\n\n\n\n
\u201cInsofar as supply is concerned, we are safe and secure. In the meetings that we are having with the oil companies\u2026they have indicated the number of vessels that they have secured and confirmed that will be coming to the country, even up to the end of May.<\/p>\n\n\n\n
“And, from time to time, when the vessels come, then they will place additional orders.<\/p>\n\n\n\n
\u201cWe have daily meetings with the oil companies and people who are responsible for supply in the oil companies. That\u2019s where they give us assurance in terms of the supply that they are bringing to the country.<\/p>\n\n\n\n
\u201cThe Director-General [Jacob Mbele] himself has meetings with the CEOs of oil companies once a week. So that\u2019s the assurance to say that the department, together with the industry, is taking the issue of supply seriously and monitoring it regularly,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Department of Mineral and Petroleum Resources says it is reviewing the local fuel price mechanism, with the process to be completed in March next year.<\/p>\n","protected":false},"author":33,"featured_media":855633,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[22162,17078],"class_list":["post-856140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-dpmr","tag-sanews"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=856140"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140\/revisions"}],"predecessor-version":[{"id":856141,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140\/revisions\/856141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/855633"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=856140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=856140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=856140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/10\/Oil-barrels.jpg\")
<\/a><\/figure>\n\n\n\nTurning to the price of paraffin, Maake explained the influences which paved the way for the fuel source to increase by R11.67 for wholesale and some R15.60 for the Single Maximum National Retail Price for Illuminating Paraffin.<\/p>\n\n\n\n
\u201cParaffin is not taxed, so the relief measure was to reduce the fuel levy, and there\u2019s no fuel levy on paraffin. <\/p>\n\n\n\n
“It is already zero-rated, so the same cannot be applied to paraffin. We need a different mechanism for paraffin,” he said.<\/p>\n\n\n\n
\u201cThe reason why paraffin has almost doubled in price is that, from a refinery production point of view, paraffin and jet fuel, when they come from the refinery, are known as dual-purpose kerosene, so it depends on the final use at the end of the day.<\/p>\n\n\n\n
\u201cThe challenge we had was that there was a demand for air travel last month globally, particularly in Europe, where they were coming from their winter season to\u2026where they wanted to travel.<\/p>\n\n\n\n
\u201cUnfortunately, because of the winter, some of the major refineries had closed down due to the very cold winter season, where they could not operate. So there was a shortage of jet fuel, and as a result, both the price of jet fuel and paraffin shot up,\u201d Maake explained.<\/p>\n\n\n\n
He added that despite these factors, the department is having \u201csleepless nights\u201d on how to bring relief to consumers of paraffin.<\/p>\n\n\n\n
\u201cWe are looking at what other mechanisms we can propose. The first one of zero rating is fine because there are no taxes on paraffin, but what is the next one? Maybe we can look at the indigent framework where paraffin users register and get direct support from the government?<\/p>\n\n\n\n
\u201c[Also] the bulk of paraffin is used in mixing with diesel by some businesspeople. So, it\u2019s very important that whatever form of support the government comes up with is targeted to the beneficiaries,\u201d he said.<\/p>\n\n\n\n
Stable supply<\/h2>\n\n\n\n
Ahead of last week’s fuel price increase, there were reports of fuel shortages at some service stations.<\/p>\n\n\n\n
\u201cWhat we have seen\u2026is something that we have never seen before. Particularly the magnitude of the fuel price increase,” he said.<\/p>\n\n\n\n
“So what likely happened is that some of the commercial customers were trying to buy in bulk in anticipation of the high fuel prices. So, they were placing additional orders on top of the orders they had with the suppliers.<\/p>\n\n\n\n
\u201cBut also, there were complaints that some service stations were running out of fuel, and people were thinking that they were hoarding fuel until the new price kicks in. That was a big challenge for us.<\/p>\n\n\n\n
\u201cHowever, we just came from the long weekend and from the reports that we are getting, there were not a lot of reports from provinces that they were running out of fuel,\u201d he said.\u00a0<\/p>\n\n\n\n
Maake reiterated assurances that supply to South Africa remains stable despite reports to the contrary.<\/p>\n\n\n\n
\u201cInsofar as supply is concerned, we are safe and secure. In the meetings that we are having with the oil companies\u2026they have indicated the number of vessels that they have secured and confirmed that will be coming to the country, even up to the end of May.<\/p>\n\n\n\n
“And, from time to time, when the vessels come, then they will place additional orders.<\/p>\n\n\n\n
\u201cWe have daily meetings with the oil companies and people who are responsible for supply in the oil companies. That\u2019s where they give us assurance in terms of the supply that they are bringing to the country.<\/p>\n\n\n\n
\u201cThe Director-General [Jacob Mbele] himself has meetings with the CEOs of oil companies once a week. So that\u2019s the assurance to say that the department, together with the industry, is taking the issue of supply seriously and monitoring it regularly,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Department of Mineral and Petroleum Resources says it is reviewing the local fuel price mechanism, with the process to be completed in March next year.<\/p>\n","protected":false},"author":33,"featured_media":855633,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[22162,17078],"class_list":["post-856140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-dpmr","tag-sanews"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=856140"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140\/revisions"}],"predecessor-version":[{"id":856141,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/856140\/revisions\/856141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/855633"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=856140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=856140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=856140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}