As originally anticipated by the Automobile Association (AA), based on unaudited mid-month data from the Central Energy Fund (CEF), both grades of unleaded petrol (93 and 95) will decrease by R1.78 a litre on Wednesday. Diesel wholesale prices will drop by between 82c and 85c, depending on the sulphur content.
The month of November provides some relief for avid road users in South Africa after months of rising petrol and diesel prices in the last few months.
According to the CEF’s data, more stable international oil prices are the main driver behind the decreases for November although the average weaker Rand-US Dollar exchange rate is shaving some of the possible decreases off what is otherwise a positive outlook.
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe announced today that the price adjustment will officially come into effect on 1 November.
International factors affecting the price adjustment include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs and shipping costs which must be taken into account.
Brent Crude oil price decreased from $91.86 to $88.72 during the period under review mainly due to the rise in global crude oil inventories as a result of increased production from non-OPEC+ producers, the lifting of sanctions on Venezuela by the US and the low impact of the Israel-Hamas conflict on the price of crude oil, irrespective of the fact that the conflict is taking place in an oil rich region.
The implementation of a slate levy to recover from a cumulative slate balance of petrol and Diesel, which had a negative balance of R6.2 billion at the end of September 2023, has been added to the price structure of both petrol and diesel. The slate levy will increase by 21.92 per liter to 52.62 per liter.
