The Department of Mineral Resources and Energy (DMRE) has announced significant changes in fuel prices for November 2023, which will come as welcome news to cash-strapped motorists. According to the Minister of Mineral Resources and Energy Gwede Mantashe, the price of petrol is set to decrease by a substantial R1.78 per litre.
Both grades of petrol, 93 and 95 ULP & LRP, will see a reduction of R1.78 cents per litre, offering relief to South African drivers. Additionally, the price of Diesel (0.05% sulphur) will come down by 85 cents per litre.
This means that a litre of 95, which previously cost R25.68 in Gauteng, will now be priced at R23.90, making it more affordable for consumers.
Fuel Price Adjustments For October 2023
- Petrol 93 will decrease by R1.78 cents per litre
- Petrol 95 will decrease by R1.78 cents per litre
- Diesel 0.05% will decrease by 85 cents per litre
- Diesel 0.005% will decrease by 82 cents per litre
- Illuminating Paraffin will decrease by 97 cents per litre
- LPGAS will increase by R1.49 cents per kg
These fuel price adjustments are influenced by various factors, including changes in crude oil prices, the Rand/US Dollar exchange rate, and the implementation of the Slate Levy.
Mantashe explained that the average international product prices of petrol, diesel, and illuminating paraffin followed the decreasing trend of crude oil, while LPGas increased due to higher prices of propane and butane during the period under review.
This led to lower contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 207.06 c/l, 115.15 c/l, and 105.18 c/l, respectively said Minister Gwede Mantashe.
These adjustments in fuel prices will take effect from Wednesday 1 November 2023.
Regarding crude oil prices, the department reported that the average Brent crude oil price decreased during the period under review. This decrease was mainly due to the rise in global crude oil inventories due to increased production from non-OPEC + producers and the lifting of sanctions on Venezuela by the US.
These factors created a positive supply outlook.
In terms of the Rand/US Dollar exchange rate, the Rand depreciated slightly on average against the US Dollar during the reviewed period compared to the previous one. This depreciation led to higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 6.34 c/l, 7.57 c/l, and 7.61 c/l, respectively.
The implementation of the slate levy will also affect fuel prices. The cumulative slate balance on petrol and diesel at the end of September 2023 had a negative balance of R6.2 billion. As a result, the slate levy will increase by 21.92 cents per litre, reaching 52.62 cents a litre.
These changes in fuel prices have a direct impact on the cost of living for all South Africans, not just motorists. It remains important to monitor these developments, especially as they relate to inflation and financial pressures facing many citizens.
