The South African government has announced a new fuel price adjustment, which will bring relief to diesel users, while petrol users will see a minimal decrease. According to the department of mineral and petroleum resources, both grades of petrol will decrease by only 1 cent per liter. This change will take the price of 95 octane petrol in Gauteng to R30.24 per liter and 93 octane petrol to R29.87 per liter.
In contrast, diesel users will experience a more substantial reduction in prices. The wholesale price of 0.05% sulphur diesel will fall by R1.10 per liter, and 0.005% sulphur diesel by R1.20 per liter. As a result, 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.
These price changes follow the recent announcement by finance minister Enoch Godongwana of a temporary cut in the general fuel levy. The levy will be reduced by R1.50 per liter for petrol and R3 per liter for diesel from November 4 to December 1. During this period, the general fuel levy will fall to 279 cents per liter for petrol and 116 cents per liter for diesel.
However, the benefit of the fuel levy cut has been largely offset for petrol users by higher international product prices, a weaker rand, and an increase in the slate levy. The department reported that international product prices for petrol, diesel, and illuminating paraffin increased during the review period between October 2 and 29.
The rand weakened against the US dollar, averaging R16.55 over the period, compared with R16.21 previously. This added 37 cents per liter to the basic fuel price of petrol and 48 cents to diesel. Additionally, the slate levy, used to recover accumulated under-recoveries in the fuel pricing system, increased by 48 cents per liter to 135.84 cents per liter for both petrol and diesel.
The price of liquefied petroleum gas will also increase, with the maximum retail price rising by R1.83 per kilogram. This change will take the inland price to R39.64 per kilogram and the coastal price to R36.39 per kilogram. The new prices will bring relief to some motorists, particularly those using diesel, while petrol users will see a limited decrease.
Overall, the fuel price adjustments reflect the ongoing fluctuations in global oil prices and the local currency. Motorists should take note of the changes and adjust their budgets accordingly. The department of mineral and petroleum resources will continue to monitor the situation and make adjustments as necessary.
Key points
- Diesel prices will drop by over R1 per liter, while petrol prices will decrease by only 1 cent per liter.
- The temporary fuel levy cut has been largely offset by higher international product prices and a weaker rand for petrol users.
- The slate levy increase and rand depreciation contributed to the limited decrease in petrol prices.
