Thanks to a boost in the Rand-Dollar exchange rate, the price of petrol will drop by around 30c a litre and diesel around 25c a litre in January 2018.
In a media statement issued yesterday, the Department of Energy said the main reasons for the fuel price adjustments were:
The contribution of the Rand/US Dollar exchange rate.
The Rand appreciated against the US Dollar from R14.10 to R13.27, on average, during the period under review when compared to the previous one. This led to a lower contribution to the Basic Fuels Price on petrol, diesel and illuminating paraffin by 42.03c/l, 42.75c/l and 42.90c/l respectively.
The increase in the prices crude oil.
The average Brent Crude oil price increased from 62.50 USD to 63.77 USD per barrel during the period under review. Brent crude closed at its highest in more than two years due to the shrinking US stockpile, while a key North Sea oil pipeline remains shut. The repair of the pipeline is now complete and pressure testing is well under way. This led to higher prices of petroleum products in the markets.
Based on current local and international factors, the fuel prices for December 2017 will be adjusted as follows:
- Petrol (93 Octane, ULP and LRP): 29.00 c/l decrease;
- Petrol (95 Octane, ULP and LRP): 34.00 c/l decrease;
- Diesel (0.05% sulphur): 22.00 c/l decrease;
- Diesel (0.005% sulphur): 26.00 c/l decrease;
- Illuminating Paraffin (wholesale): 29.00 c/l decrease;
- SMNRP for IP: 39.00 c/l decrease;
- Maximum LP Gas Retail Price: 71.00 c/kg decrease.
The fuel prices schedule for the different zones will be published on Tuesday 2 January 2018.