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Wednesday, July 24, 2024

October official fuel prices out – petrol drops while diesel goes up

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93 octane petrol will decrease by 89 cents per litre, while 95 octane – will decrease by R1.02 per litre from 5 October, the Department of Mineral Resources and Energy (DMRE) has announced.

The prices of diesel (0.05% sulphur) will increase by R0.10 cents per litre, while diesel (0.005% sulphur) will increase by R0.15 cents per litre.

Meanwhile, illuminating paraffin will now cost R0.61 less per litre. The price of LP gas increases by R0.19 cents per kilogram.

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The department said several international and local factors contributed to the decrease.

Crude oil prices

The average Brent Crude oil price decreased from 94.00 US Dollars (USD) per barrel to 89.79 USD per barrel during the period under review.

“Low demand from China, although they’re now slowly reopening their economy. The release of crude oil stocks by the International Energy Agency (IEA) member countries and the US which assisted in supplementing tight supply and keeping the prices lower.”

Read also: Fuel price capping gives an unfair advantage to illegal traders over retailers – FRA

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“Saudi Arabia cutting oil prices to compete with cheaper oil sold by Russia. Oil prices are dropping amid fears of global recession that could affect the demand for finished products,” the department said.

Rand/US dollar exchange rate

The department said the rand also depreciated on average against the USD, (from 16.70 to 17.55) Rand per USD, during the period under review when compared to the previous one.

“The Rand depreciated on average against the USD, (from 16.70 to 17.55) Rand per USD, during the period under review when compared to the previous one. The Rand was at the weakest level against the USD since May 2020.”

“The situation worsened due to the recent announcement by the US Federal Reserve to increase the interest rates by 75 basis points amid continued recession fears. This resulted in more demand and strengthening of the USD, while emerging market currencies were depicted as risky and the USD is a safer currency to accumulate,” it said

Implementation of slate levy
The department said the slate levy on the petrol price remains unchanged.

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“The negative slate balance on petrol and diesel amounted to R9.7 billion in August 2022. The slate levy applicable in the price structures of petrol and diesel will thus remain unchanged at 83.28 cents per litre.”

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

Octane differentials between 93 and 95
The departement said in line with the Working Rules to determine the Basic Fuels Prices (BFP), the 95 octane (unleaded) grade is the price-marker grade and the BFP-differential between 95 and 93 octanes is adjusted on the first Wednesday of each quarter.

“The BFP Octane differential has changed during the previous quarter and, therefore, the retail prices of 95 and 93 petrol octanes will be different in each fuel-pricing zone with effect from 5 October 2022,” the department said.

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