The minister of mineral and petroleum resources recently announced the adjustment of fuel prices with effect from Wednesday, November 6.

According to the Department of Minerals and Resources, South Africa’s fuel prices are adjusted monthly, 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 importation costs and shipping costs.

The main reasons for the fuel price adjustments are due to:

Crude oil prices
The average Brent crude oil price increased from US$72.82 to US$75.07 per barrel during the period under review. The main contributing factor is the continued conflict in the Middle East and the stand-off between Iran and Israel.

International petroleum product prices
The average international petroleum product prices increased on average, in line with the higher oil prices, during the period under review. This led to higher contributions to the basic fuel prices of petrol by 33.56c/L and 21.55c/L, diesel by 30.33c/L and 28.58c/L and illuminating paraffin by 29.79c/L, respectively.

Rand/US dollar exchange rate
The rand slightly appreciated on average against the US dollar (from R17.68 to R17.53 per US$) during the period under review. This led to lower contributions to the basic fuel prices of all products by over 8c/L.

Implementation of the slate levy
The cumulative slate amounted to a positive balance of R5.6b for petrol and diesel at the end of September. In line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 0c/L remains in the price structures of petrol and diesel with effect from November 6.

Based on current local and international factors, the fuel prices for November will be adjusted as follows:
• Petrol 93 (ULP & LRP): 25c/L increase
• Petrol 95 (ULP & LRP): 25c/L increase
• Diesel (0.05% sulphur): 21c/L increase
• Diesel (0.005% sulphur): 20c/L increase
• Illuminating paraffin (wholesale): 21c/L increase
• SMNRP for illuminating paraffin: 28c/L increase
• Maximum LPGas retail price: 36c/kg) increase.

The fuel price schedule for the different zones will be published on Tuesday, November 5.

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