The Department of Mineral Resources and Energy has announced a significant drop in the price of fuel for the month of November. Photo: iStock
After more pain at the pumps in October, when a significant increase nudged the price of all fuel grades above the R25/litre mark, the official November petrol and diesel prices will bring some welcome relief for overburdened consumers.
The last time South African motorists were given a break from the ever-rising cost of petrol was way back in July. Diesel has seen cumulative hikes of R5.71 since June.
On Monday, the Department of Mineral Resources and Energy (DMRE) announced the official petrol, diesel and paraffin price changes for November: Petrol prices (both grades) will be cut by R1.78 per litre, and diesel is set to decrease by between 82 and 85 cents a litre.
The fuel price adjustments will come into effect this Wednesday, 1 November.
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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.
According to Maake, the low impact of the Israel-Hamas conflict has not yet affected the flow of crude oil, even though it is happening in the oil-rich region of the Middle East.
The rand depreciated slightly on average against the dollar (from R19/dollar to 19.08/dollar) during the period under review when compared to the previous one.
This led to higher contributions to the fuel prices of petrol, diesel and illuminating paraffin by 6.34c/litre, 7.57c/litre and 7.61c/litre respectively.
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According to the department, the combined cumulative petrol and diesel slate balances at the end of September 2023 amounted to a negative balance of about R 6.3 billion.
In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy of 52.62c/litre (increase of 21.92c/litre) will be implemented into the price structures of petrol and diesel from 1 November.
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Take a look at how the fuel price changes will reflect:
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