Petrol price to increase ahead of the festive season

The Department of Mineral Resources and Energy on Tuesday announced the fuel price adjustments for December, leaving some motorists in a tighter spot while others will receive a much-needed reprieve.

According to the department, motorists can expect a litre of petrol – both 93 and 95 ULP & LRP – to be 59 cents more expensive. While diesel users of 0.05% sulphur and 0.005% sulphur can expect to pay 157.19 cents and 152.19 cents less per litre respectively.

The price changes are expected to take effect on Wednesday, 7 December.

Other fuel price adjustments include:

• Illuminating paraffin (IP) – wholesale price down 57.33 c per litre
• Single maximum national retail price for IP – down 76c per litre; and
• Maximum LP gas retail price – up 95c per kilogram.

Fuel price adjustments in the country are made monthly and are informed by both international and local factors.

This time around, the department put forth the slump in oil prices from $90.79 to $88.77 during the period under review, the movement in international refined petroleum products – particularly diesel and illuminating paraffin – as well as the stronger rand to the dollar over the period and the implementation of the slate levy, as just some of the main reasons for its adjustments.

Read: Soaring energy prices drive UK inflation to 41-year high

“The oil prices slumped to their lowest level since December 2021 amid fears of lower demand from China due the lockdowns in line with the country’s strict Covid-19 regulations,” The department said in a statement.

“The stronger rand led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 40.31 c/l, 48.94 c/l and 48.98 c/l respectively.”

“The negative slate balance on petrol and diesel amounted to R9,69 billion at the end of October 2022. A slate levy increase of 13.14 c/l (from 70.14 c/l to 83.28 c/l) will be implemented into the price structures of petrol and diesel, in line with the Self-Adjusting Slate Mechanism rules effective from the 7 December 2022,” the department added.