Johannesburg – The Department of Mineral Resources and Energy has announced South Africa’s official fuel price decreases for September and while the cuts are still substantial, they are smaller than originally predicted.
According to a media statement released on Monday afternoon, both grades of petrol will decrease by 2.04 per litre while 500ppm and 50ppm diesel will fall by 56 cents and 46 cents, respectively.
After the price cuts come into effect on Wednesday, September 7, a litre of 95 unleaded petrol will cost you R22.73 per litre at the coast and R23.38 per litre inland, where the cheaper 93 unleaded petrol will now cost R22.95 per litre.
While the reductions will most certainly be welcomed by motorists, fuel prices are still extremely high, historically speaking. Furthermore, month-end unaudited data had pointed to petrol price cuts in the region of R2.35 for 95 ULP; R2.18 for 93 ULP; and around 78 cents for diesel.
This appears to be due to a negative balance in the Slate Levy of over R13 billion, according to the energy department. The Slate Levy was designed to reimburse fuel companies for the imbalances that take place due to the monthly average that determines the fuel price structure.
For instance, a company may have bought fuel earlier in the month while it was more expensive, but then lower prices later in the month brought down the average.
The department says it expects the Slate Levy to be reduced in the coming months, assuming that current oil market trends continue.
Lower international oil prices were the biggest factor in September’s price decreases, but the rand which appreciated from an average of R16.87 to the dollar the previous month to around R16.70, also contributed slightly.