Department of Energy to review how it costs basic fuel price | Fin24
  • Tallest in Africa

    A new Sandton skyscraper is the tallest building on the continent, offering a view of Magaliesberg.

  • Load Shedding

    Power utility Eskom says it is not planning rotational power cuts in September or October.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


Department of Energy to review how it costs basic fuel price

Nov 28 2018 11:11

The department of energy has invited public comments on how it calculates the underlying prices of fuel, diesel and illuminating paraffin, known as the Basic Fuel Price.

This is the price of fuel before taxes, transport, and other costs are added. 

In a discussion document published in the government gazette last week, the department calls for public input on the Basic Fuel Price before the end of January next year. 

The BFP is one of four elements that makes up the pump cost of fuel in South Africa. The others are the general fuel levy, the road accident fund levy and distribution, transport and wholesale costs. 

The document includes a number of proposed tweaks to the formula it uses to calculate the BFP, from changing the reference markets it uses for calculating import costs, to reducing the number of days that refiners have to keep fuel in storage. 

While Minister of Energy Jeff Radebe has said his department is also researching the possibility of fixing a cap to the fuel price, this is not included in the document. 

The department of energy said it envisions that the revised Basic Fuel Price formula would be implemented in 2019 after “extensive consultations with all wholesalers”. It did not provide a more specific date. 

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

department of energy  |  fuel price


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote