DMRE Announces Decline In Fuel Prices In South Africa

South Africans will get to see slight changes in fuel prices since April 5 as the Department of Mineral Resources and Energy (DMRE) dropped the prices.

Minister of Mineral Resources and Energy of South Africa, Gwede Mantashe, announced on Tuesday that the "average international product prices of petrol decreased following the lower Brent crude oil prices during the period under review," as per SANews.

"The movement in product prices has led to a lower contribution to the Basic Fuel Price of petrol 93 Octane by 40c per liter and 95 Octane by 39c per liter, diesel 500 ppm by R1.16 per liter and 50ppm by R1.17 per liter as well as illuminating paraffin by R1.77 per liter," the department explained.

DMRE noted that the local currency of the Rand has depreciated against the U.S. Dollar from 17.74 to 18.03 Rand per USD compared to the previous review.

"This led to higher contributions to the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 37c, 39c, and 38c per liter, respectively," DMRE said.

The department shared that there was "volatility" in the market in the last few months due to the international Silicon Valley and Credit Suisse Banks failures, which caused uncertainty in the markets.

The international banking failure resulted in a shift from crude oil to Gold and other precious metals that eventually decreased fuel prices.

Minister Mantashe has "approved the implementation of revised zone differentials into the price structures of petrol, diesel and illuminating paraffin" from Wednesday onwards.

"The annual adjustments to road transport tariffs applicable in petrol, diesel and [illuminating paraffin] price structures will range from an increase of 40.8c per liter in Gordonia Central Magisterial District Pricing Zone to an increase of 7.8c per liter for petrol and diesel as well as 14.1c per liter for [illuminating paraffin in] Zone 9C-Gauteng," the department continued.

"As at the end of February 2023, the cumulative slate amounted to a negative balance for petrol and diesel of R 2.43 billion," the department added. "In line with the provisions of the Self-Adjusting Slate Levy Mechanism, there is a decrease of 4.38 cents per liter in the Slate levy which will be implemented into the price structures of petrol and diesel with effect from [Wednesday]. The slate levy applicable will be 17.54c per liter."

Considering the new prices announced, 93-grade petrol will be decreased by one cent per liter while 95 Petrol is expected to increase by two cents per liter. Diesel, on the other hand, 0.05% will go down by some 73c and wholesale illuminating paraffin will decrease by R1.24.

The price of Single Maximum National Retail price for illuminating paraffin will decrease by R2.01 and the Maximum LP Gas Retail Price will decrease by 92c.