Fuel price to decrease

Both grades of petrol are set to decrease by 27 cents a litre from Wednesday.

The Department of Mineral Resources and Energy on Tuesday said fuel prices for November 2020 will be adjusted as follows:

• Petrol (both 93 ULP and LRP) will decrease by 27c per litre;
• Petrol (both 95 ULP and LRP) will go down by 27c per  litre;
• Diesel (0.05% sulphur) will decrease by 12c per litre;
• Diesel (0.005% sulphur) will drop by 11c per litre;
• The price of illuminating paraffin (wholesale) will increase by 15c per litre;
• The single maximum national retail price (SMNRP) for illumination paraffin will go up by 20c per litre, and
• The maximum retail price of liquid petroleum gas (LPGas) will increase by 26c per kg.

The department said local and international factors, including the rand/dollar exchange rate, affect the price of fuel.

“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, for example, shipping costs.

“The rand appreciated slightly, on average, against the US dollar during the period under review when compared to the previous one,” the department said, adding that this led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin.

Meanwhile, during the current fuel price review, the average Brent Crude oil price decreased slightly.

“There is an oversupply of crude oil globally and the renewed lockdown measures across Europe exacerbate the situation,” the department said.