Petrol price to drop slightly in new year, with diesel price increasing

Based on current local and international factors, the fuel prices for January 2020 will be adjusted as follows:

• 93-octane petrol: 4 cents per litre cheaper
• 95-octane petrol: 14 cents per litre cheaper
• Diesel (both grades): 9 cents per litre more expensive
• Illuminating paraffin (wholesale): 5 cents per litre more expensive
• SMNRP for IP: a 7 cents per litre increase
• The maximum LPGas retail price will see a 24 cents per kilogram decrease

International factors affecting the price included primarily that the average brent crude oil price increased from $63 to $66.71 per barrel but demand for 95 octane petrol decreased internationally because motorists in Europe spent more time indoors due to the cold winter season, the ministry explained in its statement.

“On the other hand, the prices of diesel and illuminating increased by about 16.00 c/l, due to higher demand for middle distillates, in particular gas, for space heating in Europe. The diesel prices usually increase during the winter season in Europe seasonally due to higher demand of gas for space heating.

“The Rand appreciated, on average, against the US Dollar (from 14.80 to 14.47 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 15.70 c/l, 16.78 c/l and 16.64 c/l respectively,” the ministry added.

They said that Minister of Energy Gwede Mantashe had approved an increase in the retail margin of petrol of 5.60cpl to cater for the salary increase of for pump attendants, cashiers and other administration staff.

“This money will be ring-fenced for the wages of the forecourt staff, cashiers and administration personnel at all the service stations in the country.”

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