Why Diesel Prices Are Unpredictable Across South Africa

If you’ve ever stopped at different service stations across South Africa and noticed diesel prices varying wildly, you’re not imagining things. Unlike petrol, diesel is unregulated, which means the price you pay at the pump is largely determined by the retailer, not the government.

This week, the Department of Mineral Resources and Energy (DMRE) announced wholesale diesel prices had dropped to their lowest in four years: R18.41 inland and R17.58 along the coast for 0.05% sulphur diesel, and slightly higher for 0.005%. Yet, a quick fill-up at a Shell station saw coastal drivers paying just under R20 per litre, leaving many wondering where the extra R2 went.

Unpacking Diesel Deregulation

South Africa’s DMRE sets wholesale prices based on international oil costs, shipping, and distributionbut this is only a recommendation. Retailers are free to mark up prices as they see fit. The result: prices can vary by as much as R1 per litre in the same suburb, depending on factors like location, operational costs, and promotional strategies.

Experts note this price gap has widened in the last six years. Since the COVID-19 pandemic, South Africa has shifted from domestic refining to importing most diesel. Four of the country’s six refineries have closed since 2020, altering market dynamics and leaving pump prices more exposed to retailer discretion.

The Pros and Cons of Deregulation

Some argue diesel should be regulated like petrol to protect consumers, especially in areas with limited competition. Regulation could prevent price gouging and ensure price certainty.

On the other hand, deregulation fosters competition. Retailers can adjust prices based on demand and location, and savvy motorists can benefit from lower prices if they shop around. In some cases, aggressive pricing strategies can save regular diesel users a few rands per litre each week.

Tech to the Rescue: Apps Like MyTank

For drivers frustrated by the unpredictable diesel market, technology is offering a solution. Cape Town entrepreneur Rob Gardner developed MyTank, a free app that compares diesel prices at nearby stations. The app factors in driving distance, fuel rewards, and loyalty programmes, helping users find the best overall value.

“It’s about giving the consumer power,” Gardner said. “You no longer have to guess which station has the cheapest dieselyou can see it clearly and plan your refuel accordingly.”

What Drivers Should Know

Even with deregulation, about one-third of the price per litre goes to government taxes and levies, meaning diesel should theoretically cost around R16 per litre before retailer margins. Knowing this helps put pump prices in perspective and encourages motorists to shop smartly.

Social media reaction reflects frustration and pragmatism. Drivers complain about inconsistent pricing between stations on the same street, but many praise apps like MyTank for turning diesel shopping into a calculated strategy rather than a guessing game.

For South African motorists, the key takeaway is simple: diesel prices are market-driven, not government-mandated. Being informed, using technology, and comparing stations regularly can help stretch every rand spent at the pump.

{Source: The South African}

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