South African motorist are experiencing some relief in their pockets as fuel prices drop on Wednesday, 01 November. Both unleaded 93 and 95 petrol options decrease by cost R1.78 per litre, as per the announcement of the mineral resources and energy department.

The wholesale price of diesel dropped by between 82 and 85 cents, depending on the amount of sulphur in it. This will be the first drop in fuel prices after consumers felt the pinch of high prices for four consecutive months.

The department’s spokesperson Robert Maake said that illuminating paraffin would also cost less when the changes come into effect on Wednesday.

Maake said that a host of factors led to the price adjustments.

“The lower prices of oil led to lower prices of petroleum products during the period under review. The weaker rand contributed negatively by about 6 to 7 cents on the price of fuel. The slate levy will increase by 21 cents to 52 cents per litre.”

This means that inland consumers will now pay R23.44 for a litre of 93 Unleaded petrol and R23.90 for 95 Unleaded, while those at the coast will part with R23.18 for the latter.

However diesel prices remain stubbornly high, following increases of R5.40 in the past three months. The wholesale price of 500ppm diesel is now R23.44 at the coast and R24.16 inland, while 50ppm is pegged at R23.69 and R24.40 in the respective zones. You’ll need to add around R2 or more to get to the retail prices of this unregulated fuel.

According to the DMRE, lower international oil prices are the primary reason for November’s fuel price decreases.

Earlier in October,  the Automobile Association (AA) stated that the anticipated drop in fuel prices is based on a unaudited mid-month data from the Central Energy Fund (CEF).

The current price for 93 unleaded petrol is R25.22 per litre since the last increase on October 4. The price for 95 unleaded is R25.68 per litre. Both prices are for inland regions. While 93 unleaded is not available on the coast, 95 unleaded in those areas costs R24.96. 

Food prices are affected too

The initial CEF forecast has pointed to a possible decrease of around R1.97 per litre for 95 unleaded petrol and R1.92 for 93 ULP (both inland). However, the R1.78 per litre decrease for both unleaded options will arrive like sweet music to ears of hard-pressed consumers across the board.

The fuel price is not the issue for motorists alone as it affects various sectors of economy, including transportation and retail. Fuel cost affects food prices too.

Sourced: SAPIA, Automobile Association