THE PETROL PINCH.

Russia's invasion of Ukraine has put even more pressure on South African fuel prices. But a new era of pricing might be on the way

- ROBYN LUCAS & NASIFA SULAIMAN

IF THERE'S one thing that can get South Africans even madder than we are about Eskom's load shedding, it's the price of petrol. Little wonder – we're paying nearly R22 a litre for fuel and Russia's invasion of Ukraine means even more pressure at the pumps.

There are fears the petrol price will continue to soar if the war continues for much longer. It's reached the point where our government has had to introduce emergency measures to bring down the price following other countries who've done the same.

Many were relieved to hear one of the taxes and levies that the government loads onto the basic price (see the box How our fuel price is calculated) will be paused until 31 May. Finance minister Enoch Godongwana announced the news that will result in a saving of R1,50 a litre.

But even more significant is the fact that this move could be the start of a new era of fuel pricing in South Africa that could ultimately benefit consumers.

The petrol price is currently highly regulated by the government, with prices set each month. Petrol stations aren't allowed to pass on any savings so you pay the same for petrol no matter at which station you fill up.

But Godongwana has now also said that from June retailers such as Shell, Engen and BP can set their own prices, although this applies only to 93-octane petrol, which is typically used by older cars.

The price of 95 octane can be deregulated only once the government has figured out how to fill the tax gap it leaves if stopped, he announced. It makes a significant contribution to the country's coffers - about R90 billion a year.

Deregulation can be good for consumers, experts say. It leads to greater competition because retailers can determine prices and try to offer motorists good deals.

THE DIFFERENCE BETWEEN 93 AND 95 OCTANE