The Minister of Energy, Jeff Radebe, has announced the downward adjustment of fuel prices based on the current international factors with effect from 2 January 2019.
The main reasons for the fuel price adjustments are due to:
- The contribution of the rand/US dollar exchange rate – The rand depreciated, on average, against the US dollar (from R14.09 to R14.18 per USD) during the period under review when compared to the previous one. This led to a slightly higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 3.42 c/l, 3.98 c/l and 4.06 c/l respectively.
- The prices of crude oil – The average Brent Crude oil price decreased from $65.09 to $58.28 per barrel during the period under review. This was due mainly to concerns about the growth in demand as stock markets weakened because of the confusion stemming from the postponement of a Parliamentary vote on Brexit deal.
- Import prices of Petroleum Products – The international prices of all the petroleum products decreased on average during the period under review. This led lower contributions on the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 100.90 c/l, 133.00 c/l and 123.47 c/l respectively.
- Self-adjusting Slate Levy Mechanism Rules – In line with the Self-Adjusting Slate Levy Mechanism Rules, the Slate Levy on petrol and diesel will be zero effective from 2 January 2019. The current combined Slate Account balance for petrol and diesel amounted to R690-million which is above the threshold of minus R250-million.
The current fuel price adjustments are due mainly to the international factors, namely, the lower crude oil prices and weaker rand.
Based on current local and international factors, the fuel prices for January 2019 will be adjusted as follows:
- Petrol (93 Octane, ULP and LRP): 122.00 c/l decrease;
- Petrol (95 Octane, ULP and LRP): 123.00 c/l decrease;
- Diesel (0.05% sulphur): 153.92 c/l decrease;
- Diesel (0.005% sulphur): 155.92 c/l decrease;
- Illuminating Paraffin (wholesale): 123.00 c/l decrease;
- SMNRP for IP: 164.00 c/l decrease;
- Maximum LPGas Retail Price: 132.00 c/kg decrease
The fuel prices schedule for the different zones will be published on 31 December 2018.