Motorists are bracing for what could become the highest pump price in South Africa’s history, and some are already looking at filling up extra containers at home. PSG Insure, a specialist insurer, says that move carries safety and insurance risks that many homeowners underestimate.
Data from the Central Energy Fund (CEF) shows under-recoveries, the shortfall between the regulated price and the actual cost of fuel, of R1.81 per litre for 93 octane petrol and R1.93 for 95 octane in the first week of September. Diesel is showing under-recoveries between R1.73 and R2.03 per litre. If those gaps persist through the month, the regulator’s calculations suggest petrol could climb to as much as R28.83 per litre in October, edging past the previous record of R28.06 set in June 2026.
Ryno de Kock, Head of Distribution at PSG Insure, warned that storing large volumes of fuel at a residential property can create dangers that owners often overlook. “Many homeowners may not realise that fuel storage at residential properties is subject to specific guidelines,” he said. “These requirements are designed to reduce the risk of accidental fires, spills and other incidents that could endanger people and property.” He added that failure to follow those guidelines could influence how an insurer evaluates a claim after an incident.
What the guidelines say
The South African Insurance Association (SAIA) advises that residential premises should generally keep no more than 25 litres of petrol or diesel, or any other flammable liquid. The fuel must be placed in secure, ventilated containers that minimise the chance of ignition, leakage or contamination. Property owners also need to comply with municipal by-laws, occupational health and safety rules and relevant building regulations. Overlooking even a small detail, according to de Kock, can raise both safety and insurance-related exposure.
For businesses the rules differ. There is no fixed litre limit, but insurers will require that any larger storage facility meets underwriting criteria and complies with the applicable safety standards. Design, maintenance and operational procedures must be in place to prevent fires and spills, and local municipal by-laws may impose additional conditions depending on the location.
Diesel is following a similar trajectory. The wholesale price of 0.005% diesel is currently R30.05 per litre, while the record high of R31.88 was reached in May 2026. With an under-recovery of R2.03 per litre, diesel could rise to around R32.08 per litre in October.
De Kock recommends that anyone considering larger fuel reserves first speak with their insurance adviser to confirm the specific requirements of their policy and insurer. The advice is clear: the perceived financial safety net of a home fuel stash may be outweighed by the potential for fire, environmental damage and a reduced chance of claim approval.
Why home fuel storage is riskier than it looks
Petrol and diesel are flammable liquids that give off vapour at ordinary room temperature, and it is the vapour, not the liquid, that actually ignites. A sealed container in a garage or storeroom can build up enough vapour that a spark from a light switch, a geyser element or even static electricity is enough to cause a flash fire. That risk exists whether the fuel is stored in an approved container or an old cooldrink bottle, which is why most municipal fire by-laws and insurance policies restrict the volume of fuel a household may keep on the property at all.
The insurance angle compounds the safety one. A standard homeowner’s or household contents policy is priced on the assumption that the home does not contain a hazard the insurer was never told about. Storing fuel beyond what a policy’s fine print allows can, in the event of any fire on the property, whether or not the stored fuel caused it, give an insurer grounds to dispute a claim for non-disclosure of a material risk. The safest course, and the one insurers generally recommend, is checking a policy’s exact fuel-storage limit before buying so much as an extra jerry can.
South Africa’s petrol and diesel prices are set monthly under the Basic Fuel Price formula administered by the Central Energy Fund, which tracks international product prices, freight and the rand’s exchange rate rather than being set arbitrarily, which is why a price swing can be forecast days ahead of the official announcement even though it is not finalised until month end. For related coverage of the pressure on South Africa’s fuel-price cycle, see this site’s report on Eskom’s own capacity constraints, since the same rand and import-cost pressures that move fuel prices also feed into electricity generation costs.
