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Adjustment of fuel prices effective from 07 February 2018

The Department of Energy informs the public of the fuel price adjustments for February 2018. South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.

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

  1. (1)    The contribution of the Rand/US Dollar exchange rate.

The Rand appreciated, on average, against the US Dollar (from 13.23 to 12.20 Rand per USD) during the period under review. This led to a lower contribution to the Basic Fuels Price (i.e. the import parity price) on petrol, diesel and illuminating paraffin by 52.85c/l, 54.66c/l and 54.88c/l respectively.

  1. (2)    The increase in the prices crude oil.

The average Brent Crude oil price increased from 64.08USD to 69.11 USD per barrel during the period under review. The Crude Oil prices reached a three-year high of $70/bbl several times during January. The comments from OPEC Ministers, including Iran, that they would prefer prices nearer to $60/bbl in order to prevent US exports flooding their core markets, suggest that a change in emphasis may be coming and that prices may retreat in the near future.

Based on current local and international factors, the fuel prices for February 2018 will be adjusted as follows:

  •   Petrol (93 Octane, ULP and LRP): 30.00 c/l decrease;
  •   Petrol (95 Octane, ULP and LRP): 30.00 c/l decrease;
  •   Diesel (0.05% sulphur): 17.00 c/l decrease;
  •   Diesel (0.005% sulphur): 17.00 c/l decrease;
  •   Illuminating Paraffin (wholesale): 19.00 c/l decrease;
  •   SMNRP for IP: 26.00 c/l decrease;
  •   Maximum LPGas Retail Price: 23.00 c/kg decrease; and

The fuel prices schedule for the different zones will be published on Tuesday, 06 February 2018.

Read more...

Lower fuel prices in February expected

Fuel prices may result in welcome news in February after the exchange rate has continued over the past two weeks to trade at the substantially stronger levels since the end of December, despite the sharp rise in the Brent crude oil price, which is the international benchmark for oil prices, says independent economist Fanie Brink.

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Fuel prices in January

Fuel prices may bring welcome news in January after the exchange rate has appreciated significantly over the last two weeks due to the general expectation that Cyril Ramaphosa would be elected as the new president of the ANC at the 54rd conference of Nasrec in Johannesburg, says independent economist Fanie Brink.

According to the latest information from the Department of Energy, the prices of gasoline 93 (ULP & LRP) in Gauteng on Wednesday, 3 January 2017 could possibly decrease by 7,8 cents per liter and the price of diesel with a 0,005% sulphur content possibly by 7,1 cents per liter,despite the fact that the international price of crude oil has risen to almost $65 a barrel over the last two weeks, the highest level since April 2015.

The work on one of the most important oil pipelines in the world, the North Sea oil pipeline, which will take two weeks to repair a crack, has put pressure on the Brent crude oil price. The members of the Organisation for Petroleum Exporting Countries also decided two weeks ago to extend their agreement to reduce their production further from April next year until the end of 2018.

Because of this further increase in the crude oil price, it is expected that the average international price of gasoline may increase by 16,0 cents per liter in January and the diesel price by 17,7 cents per liter.

The daily average R/$ exchange rate that has strengthened to almost R/$13 over the last two weeks is expected to result in a decrease of 23,8 cents per liter in the gasoline price and 24,8 cents per liter in the diesel price.

The final price changes will be announced by the Minister of Energy.


 

 

Source

Department of Energy

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