The retail price of 95-grade petrol in South Africa will drop by 69 cents a litre on Wednesday (December 3), while wholesale diesel will decrease by 4.6%, the Department of Energy announced on Friday.
Petrol will cost R12.47 a litre while the wholesale diesel price will be R11.31 in the main Gauteng inland region.
The Automobile Association of South Africa (AA) had earlier in the month predicated that the petrol price may decrease by as much as 72 cents per litre in December.
Solidarity Research Institute (SRI) had also predicted that the fuel price could decrease by more than 70 cents a litre and the wholesale price of diesel could fall by about 50 cents on 3 December.
It also follows a 45 cents per litre cut on 5 November.
“The main contributing factor to the fuel price decreases is the continual drop in the crude oil prices, which fell to about $80 per barrel, during the period under review (31 October 2014 to 27 November 2014),” the energy department said.
It noted that the petrol margins are adjusted on an annual basis in December. This year, the margins are adjusted in accordance with the implemented Regulatory Accounting System as approved by the Department last year.
The margins increased from 198.9 c/l in the previous year to 215.4 c/I this year, the energy department said.
The overall margins adjustment increases the petrol price by 12.3 cents per litre after taking into account the 4.2 c/l salary adjustment for petrol attendants that was included in the petrol price in September 2014, it said.
It noted that the average international price of Brent crude oil fell by around US$7.0 per barrel (bbl) from an average of US$87.0 /bbl to the current level of US$80.0/bbl.
Since mid-June, Brent oil prices have fallen by more than 30% with panic over abundant supplies in the world economy as a result of rise in output from shale oil and other unconventional sources and a strong US$ dollar.
The average prices on petroleum products followed that of crude oil during the period under review. The Rand appreciated slightly during the period under review compared to the previous period.
The fuel price changes to be effected on 03 December 2014 are as follows:
- Petrol (both grades): 69.00 cl decrease
- Diesel (0.05% sulphur): 53.50 c/l decrease
- Diesel (0.005% sulphur): 54.30 c/l decrease
- IP wholesale: 49.30 c/l decrease
- SMNRP for IP: 66.00 c/l decrease
- Maximum LPGas Retail Price: 125.00 c/kg decrease