South African motorists hoping for relief at the pump may have to wait much longer. Despite public pressure and ongoing debate, there are currently no concrete plans to deregulate fuel prices or revise the country’s complex fuel pricing system in the near future.
The Democratic Alliance (DA) had initially proposed a Fuel Price Deregulation Bill in July 2022, promising to slash prices and stimulate market competition. However, the bill was eventually shelved after Parliament’s legal services deemed it a money bill, requiring introduction by the finance minister.
The DA confirmed that the bill lapsed at the end of the sixth Parliament and will not be revived in the current term. This eliminates one of the few formal avenues for deregulation under consideration.
Political Hurdles and Industry Resistance Slow Fuel Reform
According to Finance Minister Enoch Godongwana, implementing the bill would remove the general fuel levy, creating a R90-billion gap in tax revenue. This fiscal challenge has been a major stumbling block for any attempts at structural change.
The DA once claimed deregulation could reduce prices by up to R9 per litre, by allowing private imports and competitive pricing among retailers. However, the Fuel Retailers Association (FRA) pushed back strongly against this.
The FRA warned that deregulation could cripple smaller fuel stations, especially those trying to compete against major industry players with minimal profit margins. FRA CEO Reggie Sibiya said that external global factors — including petroleum product costs, exchange rates, and shipping fees — already dictate over half the pump price.
Other critics added that deregulation might only benefit larger cities, where competition is more feasible, and harm rural areas, where collusion between few station owners could inflate prices.
Wayne Duvenage, CEO of Outa, also noted that because of narrow retail margins, significant price drops are unlikely without reforming other cost elements. This sentiment was echoed by the Solidarity Movement, which petitioned Parliament to hand fuel pricing power over to the market.
Theuns Du Buisson, Solidarity’s economic researcher, said that one-size-fits-all pricing does not reflect the real cost dynamics at individual stations, especially in remote or high-cost areas.
Fuel Price Review and the Road Ahead
Alternative ideas, such as introducing a price cap on unleaded 93 octane petrol, have been on the table since 2018. Yet, implementation has stalled. Recent comments from President Cyril Ramaphosa, Mineral Resources Minister Gwede Mantashe, and Godongwana suggested that a review of the fuel price formula could be on the horizon.
The Automobile Association (AA) has long lobbied for this, arguing that a complete audit of the current pricing model is overdue. “We need to know if the current formula still suits South African conditions,” the AA said.
Despite repeated calls, the Department of Petroleum and Mineral Resources has not issued a detailed update. Industry experts warn that even if a review begins soon, results could take months or years to materialize.
For now, motorists must rely on external market shifts — such as lower global oil prices or a stronger rand — for any potential decrease in fuel costs. Structural relief through legislation or deregulation remains a distant prospect.
