Ricochet News

Petrol price for March: Fuel prices drop on Wednesday

Mar 3, 2018
Petrol price for March: Fuel prices drop on Wednesday

The Department of Energy on Friday confirmed that the price of fuel will drop on Wednesday.

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

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

“The Rand appreciated, on average, against the US Dollar (from 12.20 to 11.82 Rand per USD) during the period under review. This led to a lower contribution to the Basic Fuel Price (ie. the import parity price) on petrol, diesel and illuminating paraffin by 19.33c/l, 19.68c/l and 20.53c/l respectively,” the Department said.

It also said the decrease in the prices of crude oil.

“The average Brent Crude oil price decreased from 69.06USD to 65.05USD per barrel during the period under review. This led to lower prices of petroleum products in the international markets,” the Department added.

“The main contributing factor was the abundance of crude in the market, particularly with growing exports from the US Gulf coast, which kept the price low in the market.

“Furthermore, the forthcoming widespread refinery maintenance in the Middle East and Asia-Pacific is also muting demand for crude and limiting upward price movement.”

Based on current local and international factors, the fuel prices for March 2018 will be adjusted as follows:

  • Petrol (93 Octane, ULP and LRP): 36.00 c/l decrease,
  • Petrol (95 Octane, ULP and LRP): 36.00 c/l decrease,
  • Diesel (0.05% sulphur): 47.00 c/l decrease,
  • Diesel (0.005% sulphur): 44.00 c/l decrease,
  • Illuminating Paraffin (wholesale): 22.00 c/l decrease,
  • SMNRP for IP: 29.00 c/l decrease, and
  • Maximum LPGas Retail Price: 69.00 c/kg decrease.

“The fuel prices schedule for the different zones will be published on Tuesday, 6 March 2018.”