The South African government has announced changes to fuel prices effective November 4, bringing relief to diesel users and a marginal reduction for petrol motorists. According to the department of mineral and petroleum resources, both grades of petrol will decrease by only 1c/l. This change will take the price of 95 octane petrol in Gauteng to R30.24/l and 93 octane petrol to R29.87/l.
The decrease in petrol prices is minimal due to various factors, including higher international product prices and a weaker rand. The rand weakened against the US dollar, averaging R16.55 over the review period, compared with R16.21 previously. This added 37c/l to the basic fuel price of petrol. Despite the government's temporary R1.50/l fuel levy cut, the overall reduction in petrol prices remains limited.
Diesel users, however, will receive more substantial relief. The wholesale price of 0.05% sulphur diesel will fall by R1.10/l and 0.005% sulphur diesel by R1.20/l. The inland price of 0.05% sulphur diesel will reduce to R30.85 and that of 0.005% diesel to R31.60. At the coast, 0.05% diesel will cost R29.98 and 0.005% will cost R30.83.
The fuel price adjustments come after finance minister Enoch Godongwana announced a temporary cut in the general fuel levy in his medium-term budget policy statement on October 21. The measure reduces the levy by R1.50/l for petrol and R3/l for diesel. This relief will apply from November 4 to December 1, when the general fuel levy will fall to 279c/l for petrol and 116c/l for diesel.
The department of mineral and petroleum resources also announced an increase in the maximum retail price of liquefied petroleum gas. The price will increase by R1.83/kg, taking the inland price to R39.64/kg and the coastal price to R36.39/kg. This change is part of the government's regular review of fuel prices.
International product prices for petrol, diesel, and illuminating paraffin increased during the review period between October 2 and 29. This, combined with the weaker rand and an increase in the slate levy, has contributed to the limited reduction in petrol prices. The slate levy, used to recover accumulated under-recoveries in the fuel pricing system, rises by 48c/l to 135.84c/l for both petrol and diesel.
The fuel price changes aim to provide relief to motorists and consumers. While petrol prices see a marginal reduction, diesel users will benefit from a more significant decrease. The temporary cut in the general fuel levy will also provide additional relief to consumers.
Key points
- The fuel price changes will be effective from November 4.
- Diesel prices will decrease by more than R1/l.
- The temporary fuel levy cut will apply from November 4 to December 1.
