November fuel price changes bring good news for diesel, less so for petrol - TimesLIVE
Motorists will see a marginal reduction in petrol prices from Wednesday, despite the government’s temporary R1.50/l fuel levy cut, while diesel prices will fall by more than R1/l.
According to the latest adjustment announced by the department of mineral and petroleum resources, both grades of petrol will decrease by only 1c/l. This will take the price of 95 octane petrol in Gauteng to R30.24/l and 93 octane petrol to R29.87/l. At the coast, 95 octane petrol will cost R29.37/l.
Diesel users will receive more substantial relief, with the wholesale price of 0.05% sulphur diesel falling by R1.10/l and 0.005% sulphur diesel by R1.20/l.
The inland price of 0.05% sulphur diesel will reduce to R30.85 and that of 0.005% diesel to R31.60.
At the coast, 0.05% diesel will cost R29.98 and 0.005% will cost R30.83.
The reductions come after finance minister Enoch Godongwana announced a temporary cut in the general fuel levy in his medium-term budget policy statement on October 21. The measure reduces the levy by R1.50/l for petrol and R3/l for diesel.
The relief will apply from November 4 to December 1, when the general fuel levy will fall to 279c/l for petrol and 116c/l for diesel.
However, the benefit has been largely eroded in the case of petrol by higher international product prices, a weaker rand and an increase in the slate levy.
The department said international product prices for petrol, diesel and illuminating paraffin increased during the review period between October 2 and 29.
The rand weakened against the US dollar, averaging R16.55 over the period, compared with R16.21 previously. This added 37c/l to the basic fuel price of petrol and 48c to diesel.
A further factor was the increase in the slate levy, which is used to recover accumulated under-recoveries in the fuel pricing system. The levy rises by 48c/l to 135.84c/l for both petrol and diesel.
The maximum retail price of liquefied petroleum gas will increase by R1.83/kg, taking the inland price to R39.64/kg and the coastal price to R36.39/kg.
