The Department of Mineral Resources and Energy (DMRE) has announced the official petrol and diesel price adjustments for November.
Although still significant, the downward adjustments are lower than expected, with both grades of petrol set to fall by R1.78 per litre and diesel decreasing by between 82 cents (50ppm) and 85 cents (500ppm).
This means that inland consumers will now pay R23.44 for a litre of 93 Unleaded petrol and R23.90 for 95 Unleaded, while those at the coast will part with R23.18 for the latter.
However diesel prices remain stubbornly high, following increases of R5.40 in the past three months. The wholesale price of 500ppm diesel is now R23.44 at the coast and R24.16 inland, while 50ppm is pegged at R23.69 and R24.40 in the respective zones. You’ll need to add around R2 or more to get to the retail prices of this unregulated fuel.
According to the DMRE, lower international oil prices are the primary reason for November’s fuel price decreases.
During the period of review the price of Brent Crude oil averaged $88.72, down from the previous month’s $91,86 median. However a weaker rand stole about seven cents from the positive equation.
Although petrol price cuts of more than R2 had been predicted, a 31 cent increase in the Slate Levy took additional equity from the positive fuel price balance. This compensates oil companies for oil price fluctuations during the preceding month.
Although November’s fuel price decreases are a welcome relief, the Automobile Association remains concerned about the impact of prices that are still historically high following the price increases implemented this year.
“A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes,” the association said.