The petrol retail price is regulated and adjusted every first Wednesday of the month. The calculation of petroleum product prices (petrol, diesel and illuminating paraffin) is performed daily by the Central Energy Fund (CEF) on behalf of the Department.
The petrol pump price is composed of multiple elements that can be grouped into international and domestic components.
The underlying principles for determining the Basic Fuels Price (BFP) are to represent realistic, market-related import costs for a substantial portion of South Africa’s liquid fuel requirements. These prices reflect supplies sourced from overseas refining centres capable of meeting national quality and sustainability requirements.
The import parity (BFP) principle supports competitive efficiency between local and international refineries, helping to promote cost control and limit inflationary pressure.
Controlled petroleum product prices are influenced by two main constituents:
These components reflect the landed cost of bringing product to South African shores.
Daily product prices from export refining centres (Mediterranean, Arab Gulf, Singapore).
Transport cost from export refineries to SA ports (typically adjusted monthly).
Allowance for ship delays in loading/unloading at ports (limited days).
Allowances to cover shipment risks and uninsurable losses.
Costs for harbour/terminal facilities and coastal storage services.
Financing cost based on landed value, stockholding period and interest rates.
These are local rand-based components, including regulated margins and levies.
Road, rail, pipeline or multimodal transport from refineries to inland depots.
Regulated margins to support fair returns for wholesalers and service stations.
Levy mechanisms used to manage price impacts and policy objectives.
Levies supporting road accident compensation and customs/regional agreements.
Balances under/over recoveries from BFP-related daily movements over time.
Demand-side management and tracer dye measures to curb illegal fuel mixing.
Supports regulator funding in line with national legislation.
The Basic Fuels Price (BFP) is a cornerstone of South Africa’s fuel pricing system, ensuring domestic prices remain aligned with international competitiveness and transparent cost recovery. Together with taxes, levies, margins and transport charges, these components support a stable and sustainable fuel pricing framework.