Significant Fall in Petrol and Diesel Prices Announced for November

South African motorists can expect some reprieve at the fuel pumps, come the start of November, as major fuel adjustments have been announced. Based on a review encompassing local and global influencing factors, the corrective measures have resulted in a considerable price drop for both grades of petrol, amounting to R1.78 per litre. Diesel users will also benefit from the adjustment, as prices are due to decrease by 85.08 cents per litre.

The reduction in fuel prices is attributed to several factors. Firstly, the average Brent Crude oil price has shown an uplift, from 91.86 to 88.72 USD, primarily due to the US lifting sanctions on Venezuela. This action has presented a more positive outlook on supply, despite potential disruption due to the Israel-Hamas conflict in the oil-rich Middle East region.

Meanwhile, the Rand's depreciation against the US Dollar was very marginal during the review period: it moved from 19.00 to 19.08 Rand per USD. Additionally, necessity to address the cumulative slate balance that stood at a negative R6.2 billion at the end of September 2023, has led to an increase in the slate levy from 21.92 c/l to 52.62 c/l. This levy adjustment will take effect in the petrol and diesel price structure simultaneously.

However, it's not all good news for consumers as prices for Maximum LPG are going up. From the 1st of November, there will be an increase of R1.49 per kg.