South Africa Reduced Petrol Prices December 2023
The Department of Mineral Resources and Energy has released the official fuel price adjustments for December 2023, signalling a notable reduction in petrol and diesel prices across South Africa. Motorists can anticipate a welcome reprieve from the pump as these adjustments come into effect from Wednesday, December 6, 2023.
Fuel Price Changes: A Breakdown
Petrol:
- Petrol 93: Decrease of 65 cents per litre.
- Petrol 95: Decrease of 65 cents per litre.
Diesel:
- Diesel 0.05% (wholesale): Decrease of 235 cents per litre.
- Diesel 0.005% (wholesale): Decrease of 241 cents per litre.
Illuminating Paraffin:
- Decrease of 171 cents per litre.
LPGAS:
- Increase of 167 cents per kg.
Factors Influencing the Price Adjustments
The fuel price adjustments for December are influenced by various global and local factors impacting the cost of crude oil and refined products. Key contributors to the reduced fuel prices include:
1. International Product Prices:
- Average international product prices for petrol, diesel, and illuminating paraffin decreased, aligning with lower crude oil prices.
2. Seasonal Demand:
- Diesel and illuminating paraffin experienced more substantial price reductions due to increased production of middle distillates, catering to the expected rise in demand during the upcoming winter season in the Northern Hemisphere.
3. LPGAS Price Increase:
- LPGAS prices saw an increase attributed to rising prices of propane and butane, driven by seasonal demand.
Impact of Currency Exchange Rates
1. Rand Appreciation:
- The Rand appreciated against the US Dollar during the review period, contributing to lower Basic Fuel Prices for petrol, diesel, and illuminating paraffin.
2. Slate Levy Adjustment:
- The cumulative slate balance on petrol and diesel at the end of October 2023 showed a negative balance of R3.1 billion. Consequently, the slate levy will decrease to 26.32 c/l, marking a significant decrease from the previous month.
3. Annual Margin Adjustments:
- In line with the Regulatory Accounting System (RAS), the Minister of Mineral Resources and Energy approved a net increase of 60.1 c/l in the annual margin adjustments on petrol and a net increase of 13.88 c/l on diesel and illuminating paraffin wholesale prices.
Price Changes at the Pumps
The following table outlines the official fuel prices for November and the anticipated changes for December at both inland and coastal regions. It’s important to note that diesel prices reflect wholesale costs, and actual pump prices may vary.
Inland:
| Fuel Type | November Official | December Official |
|---|---|---|
| 93 Petrol | R23.44 | R22.79 |
| 95 Petrol | R23.90 | R23.25 |
| Diesel 0.05% (wholesale) | R24.17 | R21.82 |
| Diesel 0.005% (wholesale) | R24.40 | R21.99 |
| Illuminating Paraffin | R17.95 | R16.24 |
| LPGAS (per kg) | R35.75 | R37.42 |
Coastal:
| Fuel Type | November Official | December Official |
|---|---|---|
| 93 Petrol | R22.72 | R22.07 |
| 95 Petrol | R23.18 | R22.53 |
| Diesel 0.05% (wholesale) | R23.44 | R21.09 |
| Diesel 0.005% (wholesale) | R23.71 | R21.30 |
| Illuminating Paraffin | R17.02 | R15.31 |
| LPGAS (per kg) | R33.16 | R34.46 |
Conclusion: A Momentary Respite for Consumers
As the December 2023 fuel price adjustments bring relief to the wallets of South African motorists, the ever-changing landscape of global oil markets and currency fluctuations continues to shape the nation’s fuel economy. While these reductions offer a temporary respite, consumers are encouraged to stay informed about market dynamics and explore fuel-efficient practices to navigate the complexities of the fuel industry.
