Sunday, 23 June, 2024

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More real relief at the fuel pump for December

There will be more relief at the fuel pump this month after the minister for minerals and energy announced more price reductions.

The petrol price will drop by only 65c per litre Tuesday at midnight, but the wholesale price of diesel will drop by between R2,35 and R2,41 per litre. This is a very welcome reduction after record price increases in October, when the petrol price increased by R1,71 per litre and the wholesale price of diesel jumped R2,84 per litre.

In November, the petrol priced dropped by R1,78 per litre and the wholesale price of diesel dropped by only 82c per litre. The reduction of 65c per litre in the December petrol price might not make a huge difference to budgets, but drivers of diesel-engine cars will save between R135 and R240 on a full tank of diesel with the new price.

The average price of crude oil decreased from $88,72 per barrel to $82,62. This was due to an increase in supply from the OPEC group, as well as US oil producers who will reach record high production levels into the near future. The minister said that concerns over continued slow economic growth also played a role in lower oil prices.

The rand strengthened slightly against the US dollar, from R19,15 to R18,55. This led to lower a contribution to the basic fuel prices of petrol, diesel, and illuminating paraffin of between 33c and 37c per litre.

International petroleum-product prices declined in line with the price of crude oil. Diesel prices decreased more than petrol prices because diesel production was increased for the expected rise in demand during the northern hemisphere winter. LP gas prices increased due to the increase in the price of butane and propane as a result of seasonal demand.

The slate levy decreases from 52,62c to 26,32c per litre. The minister approved an increase of 6c per litre in the margin on petrol and 13,88c per litre on diesel.

The official changes are:

  • Petrol – decrease of 65c per litre
  • Diesel 50ppm – decrease of R2,4142 per litre
  • Diesel 500ppm – decrease of R2,3542 per litre
  • Paraffin – decrease of R1,7112 per litre in the wholesale price; decrease of R2,28 per litre in the retail price
  • LP gas – increased by a maximum of R1,67 per kilogram.

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