New petrol prices are set to take effect in Gauteng on Wednesday, 1 November 2023, with notable decreases across various fuel types.
Petrol prices: Here’s how much a litre may cost from Wednesday, 1 November 2023
In a statement, the Energy Department revealed that from Wednesday, both grades of Petrol, 93 and 95 (ULP and LRP), will witness a decrease of R1.78 per litre in retail price.
Similarly, Diesel 0.05% Sulphur and Diesel 0.005% Sulphur will also decrease in wholesale price by R0.85 and R0.82 per litre, respectively. Illuminating Paraffin is set to decrease by R0.97 per litre in wholesale price and R1.30 per litre in the Single Maximum National Retail Price (SMNRP).
Conversely, the maximum retail price for LPGAS will increase by R1.49 per kilogram.
The department confirmed adjustments in fuel prices for this month were due to the following factors:
1. Rand depreciation against the US Dollar
During the review period from 29 September 2023 to 26 October 2023, the Rand depreciated against the US Dollar.
The average exchange rate stood at 19.0797, compared to 18.9853 in the previous period. This led to an increase in the Basic Fuel Prices for petrol, diesel, and illuminating paraffin by R0.0634, R0.0757, and R0.0761 per litre, respectively.
2. Slate Levy
The negative balance of the combined cumulative petrol and diesel Slate balances stood at R 6.267 billion at the end of September 2023. Consequently, a Slate Levy of R0.5262 per litre will be applied to the price structures of petrol and diesel, an increase of R0.2192 per litre from the previous period.
3. Single Maximum National Retail Price
The Single Maximum National Retail Price for petrol from 1 November 2023 to 5 December 2023 will be R23.33 per litre, down from R24.63 per litre in the previous period. The maximum refinery gate price for LPGAS will be set at R 14,807.14 per metric ton (R8.21796 per litre), excluding VAT, for the same duration.
Here is a look at the estimated petrol price changes expected on Wednesday, 1 November 2023.
PLEASE NOTE: The petrol price adjustments listed below are directly quoted from the Department of Energy’s monthly press release. Despite our best efforts to ensure accurate reporting, it is still the sole responsibility of the reader to double-check petrol prices. Swisher Post, its parent company, partners and affiliates shall not be held liable for any consequence that arises from the journalistic duties performed in sharing this content.
Inland
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R23.90 | -R1.78 |
Petrol 93 | R23.44 | -R1.78 |
Diesel 0.05% | R24.17 | -R0.85 |
Diesel 0.005% | R24.40 | -R0.82 |
Coastal
TYPE | PRICE (p/l) | CHANGE |
Petrol 95 | R23.18 | -R1.78 |
Petrol 93 | R22.72 | -R1.78 |
Diesel 0.05% | R23.44 | -R0.85 |
Diesel 0.005% | R23.71 | -R0.82 |
What goes into the final retail price of fuel in South Africa?
Determining the final retail price of petrol in South Africa relies heavily on the rand’s performance in currency markets and oil price movements.
Using this information, the CEF can formulate basic fuel price (BFP) estimates which, in essence, offer South African importers a snapshot into the cost of buying petrol from an international refinery, transporting the product and ensuring it against possible losses at sea and on land.
However, before the retail price of petrol is finalised at petrol stations, several additional costs are included in the BFP:
Government levies
- IP tracer levy (reimbursement to the oil industry for buying IP tracer dye and injecting it into IP to curtail the mixing of IP and diesel)
- General Fuel levy (tax levied by the government)
- Slate levy (to finance the cumulative under-recovery of the industry)
- RAF levy (to compensate for people involved in road crashes and accidents)
- Petroleum products levy (reimbursement to the pipeline users for the applicable NERSA tariff on transporting fuel through the pipeline)
Additional costs
- Wholesale margin (markup to the price of a product to account for wholesaling costs)
- Service cost recoveries
- Storage, handling and delivery costs
- Distribution costs
- Dealers margin (commission to the fuel pump dealers for retail operation)
- Zone differential (applicable to inland regions)
- Customs and excise duty
Petrol price adjustments are generally made on the first Wednesday of every month by the Department of Energy.