“Motorists will breathe a sigh of relief…” says SA government news site following the Department of Energy’s announcement concerning adjustment of fuel prices.
The adjustment will take effect on 7th December 2016.
In a media statement, the Department of Energy informed South Africans about the fuel price adjustments saying the country’s fuel prices are adjusted on a monthly basis as informed by international and local factors.
The Department indicated that the international factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.
Precisely, the major reasons identified by the department for the fuel price adjustments are as listed below:
- The contribution of the Rand/US Dollar exchange rate. The Rand appreciated slightly against the US Dollar from R13.96 to R13.91, on average, during the period under review when compared to the previous one.
- The decrease in the prices crude oil, on average, during the period under review. Russia has been producing at record highs and Iraq and Iran are seeing output grow, while Libya and Nigeria are recovering and are exempt from any OPEC output cut agreement.
On a general note, the department highlighted that the market is still over-supplied with a lot of crude in storage, low freight rates and limited demand growth.
It added that the market is not expected to clear the current surplus until the latter half of 2017.
With the foregoing, the Minister of Energy has approved the annual adjustment of all the industry margins by 15.20 cents per litre (in total) on petrol and 5.96 cents per litre on diesel and illuminating paraffin.
Also, the Minister approved the wages increases of the forecourt attendants, cashiers and other administration staff by 4.9 cents per litre, in accordance with the Motor Industry Bargaining Council (MIBCO) agreement that was signed on 18 November 2016.
BuzzSouthAfrica gathered that the wage increase must be ring-fenced for the forecourt staff salaries only.
The fuel prices will be adjusted as follows:
- Petrol (93 ULP and LRP): 20.00c/l decrease;
- Petrol (95 ULP and LRP): 20.00c/l decrease;
- Diesel (0.05% Sulphur): 32.04c/l decrease;
- Diesel (0.005% Sulphur): 31.04c/l decrease;
- Wholesale price of Illuminating Paraffin: 28.04c/l decrease;
- SMNRP of Illuminating Paraffin: 38.00c/l decrease; and
- Maximum Retail Price of LPGas: 17.00c/kg decrease.