The Department of Mineral Resources and Energy has published the official fuel price adjustments for November, showing a substantial petrol price hike for motorists at the pumps from Wednesday, 3 November.
The energy department said that the average international product prices for petrol, diesel and illuminating paraffin increased during the period under review.
Prices are affected by two main components – the rand/dollar exchange rate and charges to international petroleum product costs, primarily driven by oil prices.
“The rand depreciated against the US dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 01 October 2021 to 27 October 2021 was R14.8175 compared to R14.5654 during the previous period,” it said in a statement.
Brent crude oil meanwhile, has soared this year as economies recover from the pandemic and amid an energy squeeze marked by shortages of gas and coal, Bloomberg reported.
Bank of America said it expects Brent crude to hit $120 a barrel next year. Brent crude futures settled up 99 cents, or 1.1% on Monday, to $84.71 a barrel.
These factors led to a higher contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 15.93 c/l, 15.53 c/l and 15.42 c/l respectively.
Petrol will rise by R1.21 a litre, while the price of diesel (0.05% and 0.005% sulphur) will rise by 148.2 cents a litre, the department said.
The changes are as follows:
- Petrol 95: increase of 121 cents per litre;
- Petrol 93: increase of 121 cents per litre;
- Diesel 0.05%: increase of R1.48 per litre;
- Diesel 0.005%: increase of R1.48 cents per litre;
- Illuminating Paraffin: increase R1.45 per litre.
The combined cumulative petrol and diesel slate balances at the end of September 2021 amounted to a negative balance of R1.657 billion.
The department said that in line with the provisions of the self-adjusting slate levy mechanism, a slate Levy of 15.36 c/l (increase of 2.2 c/l) will have to be implemented into the price structures of petrol and diesel with effect from 03 November 2021.
Petrol has climbed by more than R5 per litre since January (R14.01), to what will be a record high in November.
This is how the price changes will reflect at the pumps:
|Fuel (Inland)||October official||November official|
|0.05% diesel (wholesale)||R15.72||R17.19|
|0.005% diesel (wholesale)||R15.75||R17.23|
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