No drop in price of petrol


NORTH­ERN Cape res­i­dents hop­ing for a drop in the price of petrol will be left dis­ap­pointed af­ter the Depart­ment of En­ergy an­nounced yes­ter­day that the price of petrol would re­main un­changed in Novem­ber, while diesel would in­crease by 48 cents (500ppm) and 51 cents (50ppm) from mid­night tonight.

Petrol users were hop­ing for some re­lief this month af­ter the Au­to­mo­bile As­so­ci­a­tion (AA) ear­lier this month said that the petrol price was ex­pected to drop by about 16 cents a litre, fol­low­ing the unau­dited month-end fuel price data re­leased by the Cen­tral En­ergy Fund.

“We ex­pect the petrol price to drop by about 16 cents a litre, and, un­for­tu­nately, diesel and il­lu­mi­nat­ing paraf­fin will both in­crease by about 30 cents a litre,” a state­ment is­sued by the AA ear­lier this month read.

How­ever, the Depart­ment of En­ergy yes­ter­day an­nounced that the price of petrol would re­main un­changed in Novem­ber, while diesel would in­crease by 48 cents (500ppm) and 51 cents (50ppm), on Wed­nes­day, Novem­ber 7. The whole­sale price of il­lu­mi­nat­ing paraf­fin will rise by 28 cents.

Thus mo­torists will still pay R16.85 a litre for 93 oc­tane un­leaded and R17.08 for 95 un­leaded, while those at the coast will be pay­ing R16.49 for 95.

Dur­ing yes­ter­day’s an­nounce­ment of the ad­just­ment of fuel prices ef­fec­tive from Novem­ber 7, the Min­is­ter of En­ergy, Jeff Radebe, said that the main rea­sons for the fuel price ad­just­ments were due to the con­tri­bu­tion of the rand/US dol­lar ex­change rate, the prices of crude oil, im­port prices of petroleum prod­ucts and self-ad­just­ing slate levy mech­a­nism rules.

‘The rand ap­pre­ci­ated, on av­er­age, against the US dol­lar (from 14.49 to 14.79 rand per USD) dur­ing the pe­riod un­der re­view when com­pared to the pre­vi­ous one. This led to lower con­tri­bu­tion to the ba­sic fuel prices of petrol, diesel and il­lu­mi­nat­ing paraf­fin by 16.94c/l, 18.73c/l and 18.66c/l re­spec­tively. The av­er­age brent crude oil price in­creased from 78.89

USD to 81.03 USD per bar­rel dur­ing the pe­riod un­der re­view. The main con­tribut­ing fac­tors were the un­cer­tainty ahead of the US sanc­tion on Iran and on­go­ing trade ten­sion be­tween the US and China which has sparked con­cerns about the short- to medium-term oil de­mand. The in­ter­na­tional prices of petrol de­creased slightly and diesel in­creased on av­er­age dur­ing the pe­riod un­der re­view,” Radebe said

“The price dif­fer­en­tial be­tween petrol and diesel widened dur­ing the cur­rent fuel pric­ing re­view pe­riod due to con­cerns of re­gional sup­ply in the US south-east which boosted north-western Euro­pean and US East Coast diesel prices and the North­ern Hemi­sphere ap­proach­ing win­ter sea­son.

“In line with the self-ad­just­ing slate levy mech­a­nism rules, the slate levy on petrol and diesel will be 21.92 c/l ef­fec­tive from the Novem­ber 7 2018. The cur­rent com­bined slate ac­count bal­ance for petrol and diesel amounted to mi­nus R2.2 bil­lion which is be­low the thresh­old of mi­nus R250 mil­lion The cur­rent fuel price ad­just­ments are due mainly to the in­ter­na­tional fac­tors, namely, the stronger rand and higher crude oil prices. Geopo­lit­i­cal ten­sions are hav­ing a very neg­a­tive im­pact on crude oil prices and con­se­quently re­fined prod­uct prices glob­ally.”

Radebe added that based on cur­rent lo­cal and in­ter­na­tional fac­tors, the fuel prices for Novem­ber 2018 will be ad­justed as fol­lows: Petrol (93 oc­tane, ULP and LRP): un­changed; petrol (95 oc­tane, ULP and LRP): un­changed; diesel (0.05% sul­phur): 47.92 c/l in­crease; diesel (0.005% sul­phur): 50.92 c/l in­crease; il­lu­mi­nat­ing paraf­fin (whole­sale): 28.00 c/l in­crease; SMNRP for IP: 37.00 c/l in­crease; max­i­mum LP gas re­tail price: 61.00 c/kg in­crease.

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