Diesel is a type of fuel that is used in many vehicles, including cars, trucks, and buses. It is a popular choice for vehicles that travel long distances, as it is more fuel-efficient than gasoline. In South Africa, the price of diesel per litre varies depending on several factors, including the location, the type of diesel, and the current market conditions.
Current Diesel Prices
As of November 2023, the average price of diesel 500 ppm (0.05% sulphur) in South Africa is R23.44 per litre. The average price of diesel 5 ppm (0.005% sulphur) is R23.68 per litre. Prices are slightly higher in inland areas than in coastal areas.
Factors Affecting Diesel Prices In South Africa
The price of diesel per litre in South Africa is affected by several factors. Some of these factors are:
a. The price of crude oil: Crude oil is the main ingredient in diesel, so the price of crude oil has a direct impact on the price of diesel. When the price of crude oil rises, the price of diesel also rises.
b. The rand/dollar exchange rate: The rand/dollar exchange rate is important because South Africa imports crude oil from other countries. When the rand weakens against the dollar, it becomes more expensive for South Africa to import crude oil, which leads to higher diesel prices.
c. Taxes and levies: The South African government imposes a number of taxes and levies on diesel, which also contributes to the price.
Price Trends
The price of diesel per litre in South Africa has been volatile in recent years. In 2022, the price reached a record high of R26.09 per litre. However, prices have been coming down in recent months, thanks to a combination of factors, including a decline in the price of crude oil and a strengthening of the rand.
Impact Of Diesel Prices
The price of diesel per litre has a significant impact on the South African economy. Higher diesel prices can lead to increased transportation costs, which can then be passed on to consumers in the form of higher prices for goods and services. This can have a negative impact on the economy, as it can reduce consumer spending and investment.