Energy

Official petrol price for December 2016

Staff Writer

 ·4 Dec 2016

The department of energy has announced the official petrol price changes for December 2016.

Motorists will pay 20 cents a litre less for both grades of petrol – 93 and 95 octane, and diesel will see a 32.04 cents decrease.

These are the changes, effective Wednesday 7 December:

• Petrol 95: 20 cents decrease
• Petrol 93: 20 cents decrease
• Diesel 0.05%: 32.04 cents decrease
• Diesel 0.005%: 31.04 cents decrease
• Illuminating Paraffin: 28.04 cents decrease

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

• The contribution of the rand/US dollar exchange rate. The rand appreciated slightly against the US Dollar from R13.96 to R13.91, on average, during the period under review when compared to the previous one.
• The decrease in the prices crude oil, on average, during the period under review. Russia has been producing at record highs and Iraq and Iran are seeing output grow, while Libya and Nigeria are recovering and are exempt from any OPEC output cut agreement. Generally speaking the market is still oversupplied with a lot of crude in storage, low freight rates and limited demand growth. The market is not expected to clear the current surplus until the latter half of 2017.
• The Minister of Energy has approved the annual adjustment of all the industry margins by 15.20 cents per litre (in total) on petrol and 5.96 cents per litre on diesel and illuminating paraffin, in line with Regulatory Accounting System methodology.
• The Minister also approved the wages increases of the forecourt attendants, cashiers and other administration staff by 4.9 cents per litre, in accordance with the Motor Industry Bargaining Council (MIBCO) agreement that was signed on 18 November 2016. This wage increase must be ring-fenced for the forecourt staff salaries only.

This is how the price will reflect at the pumps (wholesale for Diesel):