Ricochet News

Good news for motorists as fuel prices drop at midnight

Dec 30, 2017
Good news for motorists as fuel prices drop at midnight

The Department of Energy on Friday confirmed that fuel prices will drop on Wednesday, bringing some relief to motorists and consumers after a series of price hikes in the latter part of 2017.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

According to the Department, international factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.

The main reasons for the fuel price adjustments are due to the contribution of the Rand/US Dollar exchange rate.

"The Rand appreciated against the US Dollar from R14.10 to R13.27, on average, during the period under review when compared to the previous one. This led to a lower contribution to the Basic Fuels Price on petrol, diesel and illuminating paraffin by 42.03c/l, 42.75c/l and 42.90c/l respectively," the Department said.

"The average Brent Crude oil price increased from 62.50USD to 63.77 USD per barrel during the period under review. Brent crude closed at its highest in more than two years due to the shrinking US stockpile, while a key North Sea oil pipeline remains shut.

"The repair of the pipeline is now complete and pressure testing is well under way. This led to higher prices of petroleum products in the markets."

Based on current local and international factors, the fuel prices for December 2017 will be adjusted as follows:

  • Petrol (93 Octane, ULP and LRP): 29.00 c/l decrease;
  • Petrol (95 Octane, ULP and LRP): 34.00 c/l decrease;
  • Diesel (0.05% sulphur): 22.00 c/l decrease;
  • Diesel (0.005% sulphur): 26.00 c/l decrease;
  • Illuminating Paraffin (wholesale): 29.00 c/l decrease;
  • SMNRP for IP: 39.00 c/l decrease; and
  • Maximum LPGas Retail Price: 71.00 c/kg decrease.

The fuel prices schedule for the different zones will be published on Tuesday, 02 January 2018.