Big fuel price increases announced for October

The Department of Energy has published the final petrol price changes for October 2019.

The changes are as follows:

  • Petrol 93 will decrease by 4 cents per litre
  • Petrol 95 will increase by 18 cents per litre
  • Diesel will increase by 25 cents per litre (both grades)
  • Illuminating paraffin will increase by 25 cents a litre.

According to the department, the large difference between the prices of the 93 and 95 grades of petrol is because of a recalculation in the basic fuel price (BFP) for each category.

In terms of the working rules to administer the BFP, the differentials between 95 and 93 petrol grades are adjusted at the beginning of each quarter. The BFP differentials between 95 and 93 petrol grades have changed and therefore there are different price adjustments between the two grades.

The price increase for most grades of petrol and diesel is largely a result of higher international petroleum product costs, arising from a higher oil price following drone attacks on Saudi Arabia’s oil plants.

This upward movement led to a higher contribution to local prices of between 35 c/l and 42 c/l for petrol and diesel, respectively.

However, the rand also appreciated against the US dollar during the period under review, on average, when compared to the previous period, which had a more positive impact on fuel prices.

The average rand/US dollar exchange rate for the period 30 August 2019 – 26 September 2019 was R14.84 compared to R15.17 during the previous period.

This led to a lower contribution to the BFP on petrol, diesel and illuminating paraffin by 16 c/l, 17 c/l and 17 c/l respectively.

Here are the official prices which will kick in on 2 October 2019:

Fuel (Inland) September Official October Official
95 Petrol R16.03 R16.21
93 Petrol R15.83 R15.79
0.05% Diesel (wholesale) R14.59 R14.84

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Big fuel price increases announced for October