By Lehlohonolo Lehana.
Motorists have been given an early Christmas present after the Department of Mineral Resources and Energy (DRME) announced decreases in the prices of petrol and diesel on Friday.
The prices of illuminating paraffin will come down by LP Gas will go up when fuel prices are adjusted next Wednesday.
In a statement on Friday, the Department said both grades of petrol will decrease by 65 cents a litre next Wednesday.
Spokesperson, Robert Maake, says diesel will drop by between R2.35 and R2.41 cents a litre for both grades while illuminating paraffin will come down by R1.71 a litre.
The retail price of maximum LPGas will, however, go up by R1.67 per kilogram due to the increase in the price of propane and butane as a result of seasonal demand.
Maake said the average international product prices of petrol, diesel and illuminating paraffin decreased in line with the lower crude oil prices.
“Diesel and illuminating paraffin prices declined more than petrol because of increased production of middle distillates by refiners to cater for the expected increase in demand during the upcoming winter season in the Northern Hemisphere”.
Maake said the cumulative slate balance on petrol and Diesel at the end of October 2023 had a negative balance of R3,1 billion.
“Therefore, a slate levy of 26.32 c/l will be implemented in the price structure of petrol and diesel from the 6th of December 2023. This means that motorists will benefit by 26.30 cents per litre since the slate levy will decrease from 52.62 to 26.32 cents per litre”.
The decrease in the fuel price is attributed to the lower oil price from about 89 dollars a barrel to 82 dollars during the period under review.
According to the Department increased oil supply from non-OPEC countries such as the US have recorded higher than expected oil production, coupled with uncertainty from the delayed OPEC+ meeting and disagreements regarding production levels and a continued slow global economic growth concerns have attributed to the price declines.
The rand also appreciated against the US dollar during the period under review from R19.16 to R18.55. This led to lower contributions to the Basic Fuel Price of petrol, diesel and illuminating paraffin.