Dear Valued Client,

Although we only have two months of 2024 behind us, there have been many significant events and developments during this period.

Firstly, the Mining Indaba was held at the beginning of February in Cape Town. In his speech, The Minister of Mineral Resources and Energy, Mr Gwede Mantashe acknowledged that 2023 was a challenging year for our country’s mining industry, citing high energy prices and inflation, lower commodity prices, load-shedding, and logistical infrastructure challenges.

Despite these roadblocks over the past year, the industry has reason to have a positive outlook for 2024. From the announcement of the R500 million Minerals Exploration Fund to new discoveries in provinces such KwaZulu-Natal, Mpumalanga, and Limpopo, it is an exciting time to be part of the mining industry and we look forward to playing a critical part as one of South Africa’s leading wholesale fuel distributors.

The flat or even positive swing for diesel prices will bring welcome relief to South African industries, especially for the logistics and agricultural sector.

After starting the month on the back foot, a swing in fortunes is in play for diesel prices in South Africa – with a sizeable under-recovery turning into a flat balance – and stirring hope for next month.

The latest data from the Central Energy Fund (CEF) shows that diesel prices have moved from an under-recovery of around 65 cents per litre at the start of the month to a flatter rate, ranging from -0.5 cents per litre to an over-recovery of 1 cent per litre.