APRIL NEWSLETTER
Keeping You Up To Speed On The Most Pressing Fuel Industry Developments
As we head towards the Easter holidays, many of us will want to go on much-needed vacations or travel to see loved ones. However, petrol prices are on a trajectory upwards, which is being caused by a variety of factors, one of them being the sanctions imposed on Russia ‒ one of the globe’s largest oil producers.
Petroleum Industry Warning…
“SA refineries could be obsolete within two years”
The South African Petroleum Industry Association (Sapia) warns that the petroleum industry does not have enough time to upgrade its refineries to meet new regulations within the next two years, and this could render them obsolete, forcing the country to rely on imported refined products.
Premium Lubricants On The Rise
Despite the current challenges facing the globe in terms of rising fuel prices, the global market for lubricants is looking positive on the back of growth in the automotive sector. Specifically, the demand for premium engine oils to lubricate internal combustion engines is on the rise thanks to an increased uptake of high-end cars across the globe.
High-end cars are increasingly being adopted globally owing to advancements in technology, safety and fuel efficiency.
Moreover, bio-based and chemical-free lubricants are on the up. These more environment-friendly lubricants are considered to have a greater lubricity and are therefore increasingly sought out by automobile owners.
Government Interventions Might Save The Easter Holidays
Since last year, the South African government’s fuel levy sat at about R3.85/L. Add that to the Road Accident Fund levy of R1.63/L and then other levies of R1.82/L, in addition to the retail margin of 2.28/L and the wholesale margin of 46c/L, and we see that just about half of the current petrol price is made up of taxes.
Although the basic fuel price, which is impacted by exchange rates and the international oil price, continues to rise, the government’s merciful decision to reduce its fuel levy by R1.50/L for April and May will reduce the overall fuel price from about R23.40/L to about R21.90/L, bringing a bit of relief to motorists over the Easter period.
Organisation Undoing Tax Abuse (OUTA) has said this difficult period has prompted the government to review its fuel levies and stop its relentless levy increases year on year, which it believes is a good thing, despite the difficult circumstances.
Stay tuned for the next newsletter for more fuel industry news so that you stay informed! Contact us for further information.
Look out for our next newsletter so that you can stay in touch and in tune with everything happening in the fuel industry. Contact us for further info.