South Africa’s Department of Energy has released the official fuel price adjustments for October. The adjustments show a minimal decrease in the price of petrol for motorists, while diesel prices are experiencing a slight increase.
Mid-month fuel price data showed a possible decrease in fuel prices for October, however, the price of Brent Crude oil and the dollar-rand exchange rate both reversed any beneficial changes in the fuel price for South African motorists in the last few weeks.
Brent Crude oil is now seeing a price of above $81 per barrel, while Goldman Sachs is expecting the price of Brent Crude to be at $90 a barrel by the end of the year. The rand also continued to weaken over September but managed to stay above R15.00 against the dollar into October.
According to the Department, fuel prices will change as follows. Prices are in ZAR:
- Petrol 95: decrease of 1 cent per litre.
- Petrol 93: decrease of 4 cents per litre.
- Diesel 0.05%: increase of 22.8 cents per litre.
- Diesel 0.005%: increase of 22.8 cents per litre.
- Illuminating Paraffin: increase 43 cents per litre.
The new prices come into effect on Wednesday, 6 October. We can see that both diesel and illuminating paraffin will be taking a larger rise, as petrol prices more or less stay the same.
Changes to fuel prices are usually influenced by both the international petroleum cost and currency exchange rates.
“The average international product prices for Petrol, Diesel and Illuminating Paraffin increased during the period under review,” the Department said, quoted by BusinessTech.
“The rand appreciated against the US Dollar during the period under review, on average, when compared to the previous period.”
Further, the Department has said that in line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 13.15 cents/litre (decrease of 2.2 cents/litre) will be implemented into the price structures of petrol and diesel with effect from Wednesday 6 October 2021.
By Luis Monzon
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