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Monday, 30 October 2023 15:43

Huge relief for motorists in November with fuel prices drop.

By Lehlohonolo Lehana.

Department of Mineral Resources and Energy (DRME) has published the official petrol and diesel price changes for November 2023.

The price of both grades of unleaded petrol (93 and 95) will be lowered by R1.78 a litre on Wednesday, while diesel wholesale prices will be cut by between 82c and 85c depending on the sulphur content.

The maximum national retail price of paraffin will fall by R1.30 a litre, but the maximum retail price for LPGAS will be hiked by R1.49 a kilogram.

On Wednesday, Gauteng 95 unleaded petrol will cost R23.90 a litre, the cheapest level since August this year. At the start of the year, a litre 95 unleaded petrol cost R21.40.

The diesel wholesale price in Gauteng will be R24.17 a litre from Wednesday, compared to R21.22 at the start of the year.

The average international product prices for Petrol, Diesel and Illuminating Paraffin decreased during the period under review.

The department's spokesperson Robert Maake cited the price of Brent Crude oil as the main contributor to the fuel price decreases.

"The average Brent Crude oil price increased from $91.86 to $88.72 during the period under review, mainly due to the rise in global crude oil inventories because of increased production from non-OPEC + producers.

"The lifting of sanctions on Venezuela by the US created a positive supply outlook," he added.

The Rand depreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period 29 September 2023 to 26 October 2023 was 19.0797 compared to 18.9853 during the previous period.

This led to a higher contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 6.34 c/l, 7.57 c/l and 7.61 c/l, respectively.

The combined cumulative petrol and diesel Slate balances at the end of September 2023 amounted to a negative balance of R 6.267 billion.

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 52.62 c/l (increase of 21.92 c/l) will be implemented into the price structures of petrol and diesel with effect from 01 November 2023.

The Single Maximum National Retail Price for the period 01 November 2023 to 05 December 2023 will be 2 333.0 compared to 2 463.0 c/l for the period 04 October 2023 to 31 October 2023.