The Minister of Mineral Resources and Energy, Mr Gwede Mantashe, announces the adjustment of fuel prices based on current local and international factors with effect from the 6th of January 2021.
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.
The main reasons for the fuel price adjustments are due to:
1. The contribution of the Rand/US Dollar exchange rate
The Rand appreciated, on average, against the US Dollar (from 15.17 to 14.93 Rand per USD) during the period under review when compared to the previous one. This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by about 24.00 c/l.
2. The increase in the prices crude oil
The average Brent Crude oil price increased by almost 20% from 42.10USD to 49.20USD per barrel during the period under review. Crude oil prices continued to climb after the American Petroleum Institute (API) reported a crude oil inventory drawdown of 4.785 million barrels for the week ending on 25 December 2020.
3. The Petroleum Products Prices
With respect to finished products, the movement in international prices of petrol diesel and illuminating paraffin increased by about 67.29 c/l, 80.01 c/l and 79.82 c/I respectively, during the period under review.
Based on current local and international factors, the fuel prices for January 2021 will be adjusted as follows:
• Petrol (both 93 ULP and LRP): forty three cents per litre (43.00 c/l) increase
• Petrol (both 95 ULP and LRP): forty cents per litre (40.00 c/l) increase;
• Diesel (0.05% sulphur): fifty five cents per litre (55.00 c/l) increase;
• Diesel (0.005% sulphur): fifty four cents per litre (54.00 c/l) increase;
• Illuminating Paraffin (wholesale): fifty five cents per litre (55.00 c/l) increase;
• SMNRP for IP: seventy four cents per litre (74.00 c/l) increase;
• Maximum LPGas Retail Price: forty four cents per kilogram (44.00 c/kg) decrease; and
The fuel prices schedule for the different zones will be published on Tuesday, the 5th of January 2021.
Source: Government of South Africa