Dear Valued Partners,
In the wake of the recent fuel price increase, we at Virgin Fuels recognise the challenges our clients face as they navigate these changes. As the first fuel price hike in six months takes effect, it’s crucial for us to understand how these adjustments impact both businesses and consumers throughout South Africa.
The recent fuel price hike, the first in six months, signals a notable shift in market conditions, impacting both consumers and businesses across South Africa. After a period of steady decreases, the Department of Mineral Resources and Energy has announced an upward adjustment, effective from Wednesday, 6 November 2024. This slight increase —25 cents per litre for petrol and 20–21 cents per litre for diesel—reflects broader shifts in both global and local fuel markets, underscoring the dynamic nature of the energy sector.
As Henry van der Merwe, Chairman of SAPRA, noted, these fluctuations are a natural part of the energy landscape, affecting everything from transportation costs to household expenses. At Virgin Fuels, we understand the strain that rising fuel prices can place on your operations, and we remain committed to supporting you through transparent communication and reliable service.
This price adjustment serves as a reminder of the importance of resilience and adaptability in today’s energy market. At Virgin Fuels, we remain steadfast in our commitment to supporting you during this transition. We aim to provide not just fuel, but also the guidance and transparency needed to manage these fluctuations effectively. Together, we will adapt to the new normal, ensuring that you remain well-informed and prepared for the journey ahead.
Fuelling the Present, Risking the Future: South Africa’s Oil Reserves Sold to Fund Fuel Levy Relief
The South African government continues to sell off its strategic oil reserves to offset costs from the 2022 fuel levy cut, raising concerns among industry experts. This measure, introduced to relieve consumers from rising fuel prices, involved a temporary reduction of the general fuel levy to ease the burden on households and businesses. To finance this, the government began selling oil from its strategic stockpile, an emergency reserve meant to secure the country against global supply disruptions or severe price spikes.
While this strategy provided short-term relief, it now raises questions about long-term energy security. The global oil market remains volatile, and depleting the nation’s emergency reserves could leave South Africa vulnerable in times of crisis. Economists argue for a more sustainable approach to managing fuel costs without compromising national energy security, as the ongoing sale of reserves could potentially jeopardize South Africa’s preparedness in a future energy emergency.
Keeping Up with Today’s Engines: The Essential Role of Fuel Additives
Modern engines demand modern fuels. Advances in engine technology have led to new requirements for fuel, highlighting the importance of additives to ensure optimal performance. For instance, as sulphur content in fuels decreases to meet environmental standards, lubricity additives become necessary to protect critical parts like diesel injector pumps. Additives also play a key role in enhancing cetane levels, improving cold weather performance, and stabilizing fuel.
Diesel additives are more than just optional extras—they reflect the evolving needs of engines and growing demands for fuel efficiency. Deposit control additives, corrosion inhibitors, and anti-foam agents, among others, help maintain cleaner engines, reduce emissions, and support better fuel economy.
Virgin Fuels is committed to offering premium diesel with multi-functional additive packages, ensuring that vehicles perform reliably without the need for aftermarket solutions. Our quality fuels align with the demands of today’s high-performance engines, supporting your fleet’s longevity and efficiency.
Myth Buster: Debunking Common Misconceptions About Diesel Fuel
Diesel is vital to commercial transport and powers economies worldwide. Yet, misconceptions about diesel often portray it as a “dirty” fuel. Virgin Fuels is here to bust some of these myths, starting with four of the most common ones:
Myth: Diesel is a dirty fuel. Diesel has evolved, with cleaner formulations reducing harmful emissions. Low-sulphur diesel, for instance, produces fewer particulates and greenhouse gases. Advanced additives like Techron® D help keep engines clean, reducing emissions and extending engine life.
Myth: Diesel color affects performance. Contrary to belief, diesel color varies naturally due to refining processes. A pale color doesn’t indicate poor quality. Over time, stored diesel darkens due to oxidation but remains usable if stored correctly.
Myth: All diesel is the same. Diesel quality varies, largely defined by cetane rating and sulphur content. Virgin Fuels offers low-sulphur, high-cetane diesel that enhances engine efficiency and longevity, especially in demanding industries like mining.
Myth: Denser diesel is better. Density doesn’t equate to quality. Low-sulphur diesel may be less dense, but it meets rigorous standards to ensure optimal performance and minimal emissions.
Virgin Fuels provides premium diesel that supports cleaner, more efficient transport solutions, empowering businesses with quality they can rely on.
Fuel Quality and Seasonal Changes: Preparing for Temperature Extremes
Diesel fuel quality and performance can fluctuate significantly with seasonal temperature changes, and understanding these effects can help you better prepare for extreme weather. In cold weather, diesel is prone to “gelling,” where the naturally occurring waxes in the fuel crystallize, causing clogging in fuel lines and filters. To counter this, using winter-grade diesel or cold flow additives can help lower the fuel’s cloud and pour points, ensuring smoother flow and preventing engine issues.
On the other hand, in high temperatures, diesel can degrade faster, leading to fuel instability and potential microbial growth, especially in stored fuel. Using stabilizing additives and ensuring proper tank sealing can minimize oxidation and contamination risks.
For fleets operating year-round, it’s essential to work with a reliable fuel supplier, like Virgin Fuels, who offers seasonally tailored diesel blends and expert guidance to keep your engines performing reliably, no matter the season.