The Department of Mineral Resources and Energy has announced substantial decreases in fuel prices for December 2023, offering a welcomed respite for South African motorists. With a significant cut set to take effect from December 6, this adjustment brings relief in both petrol and diesel costs across the country.
Petrol prices are slated for a considerable drop of 65 cents per litre, while diesel prices are expected to decrease between R2.35 and R2.41 per litre.
The drop in fuel prices aligns with the downward trend observed in November, following the decline in international product prices of petrol, diesel, and illuminating paraffin. This dip can be attributed to the decrease in crude oil prices, with diesel and illuminating paraffin experiencing a more pronounced decline due to increased production to meet the expected winter demand in the Northern Hemisphere.
Conversely, LPG prices have risen due to increased demand for propane and butane, reflecting seasonal changes in market dynamics.
Additionally, the cumulative slate balance on petrol and diesel as of October 2023 shows a negative balance of R3.1 billion, leading to a decrease in the slate levy to 26.32 c/l – a substantial drop from the previous month.
The application of the Regulatory Accounting System (RAS) has prompted the Minister of Mineral Resources and Energy to approve a net increase of 60.1 c/l in annual margin adjustments on petrol. For diesel and illuminating paraffin wholesale prices, there will be a net increase of 13.88 c/l, effective from December 6, 2023.
The following table demonstrates the anticipated changes at the pumps (wholesale prices for diesel; actual pump prices may vary):
These changes are expected to bring significant relief to South African motorists, reducing the cost burden at a time when economic pressures are felt across various sectors. The substantial drop in petrol and diesel prices particularly stands to positively impact daily commuters and businesses reliant on transportation, offering a reprieve in their operational expenses.
The Department of Mineral Resources and Energy continues to monitor global market fluctuations and local economic conditions, aiming to maintain a balance that benefits both consumers and the energy sector.