Cape Town - A stronger rand and a decrease in the cost of crude oil are among the factors listed by Energy Minister Jeff Radebe which contributed to the nearly R2/litre drop in the fuel price.
Fuel prices are coming down on Wednesday, with the price of petrol dropping by R1.84 for 93 and 95 octane unleaded, while diesel comes down by between R1.45 and R1.47 per litre.
This means petrol will dip below R15/litre at the coast, and cost R15.22 at inland pumps.
From Wednesday, motorists will pay R14.65 at the coast.
"South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs," the department of energy said.
"The main reasons for the fuel price adjustments are due to:
(1) The contribution of the Rand/US Dollar exchange rate
The Rand appreciated, on average, against the US Dollar (from 14.79 to 13.67 Rand per USD) during the period under review when compared to the previous one. The led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 18.50 c/l, 21.53 c/l and 21.66 c/l respectively.
(2) The prices of crude oil
The average Brent Crude oil price decreased from 81.15USD to 65.79USD per barrel during the period under review. The main contributing factors were (a) the start-up of Nghi Son refinery in Vietnam, and a new RFCC at Onsan refinery in South Korea which contributed to increased supply of crude oil and (b) the USA stock levels remain high and weak export economics into the Atlantic Basin persist. The demand is expected to fall throughout the remainder of the year.
(3) Import prices of Petroleum Products
The international prices of all the petroleum products decreased on average during the period under review. This led lower contributions on the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 174.00 c/l, 130.00 c/l and 116.00 c/l respectively.
(4) Annual adjustment of the Industry Margins
In line with the application of the Regulatory Accounts System the Minister of Energy has approved a net increase of 7.70 c/l in the annual margin adjustments on petrol and a net increase of 4.59 cents per litre on diesel and illuminating paraffin wholesale prices, with effect from 05 December 2017
(5) Adjustment to the Maximum Retail Price of LPGas
The Minister of Energy has also approved the adjustment of some of the pricing elements of the Maximum Retail Price structure of LPGas by 65.00 c/kg increase with effect from 05 December 2018," the department said.
Based on current local and international factors, the fuel prices for November 2018 will be adjusted as follows:
* Petrol (93 Octane, ULP and LRP): 184.00 c/l decrease;
* Petrol (95 Octane, ULP and LRP): 184.00 c/l decrease;
* Diesel (0.05% sulphur): 145.41 c/l decrease;
* Diesel (0.005% sulphur): 147.41 c/l decrease;
* Illuminating Paraffin (wholesale): 133.41 c/l decrease;
* SMNRP for IP: 178.00 c/l decrease;
* Maximum LPGas Retail Price: 243.00 c/kg decrease
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