South Africans Rejoice As Petrol Prices Drop On Wedenesday, 6th December
South Africans have a reason to celebrate as the petrol prices have dropped for the second time in a month, bringing relief to motorists and consumers. The Department of Minerals and Energy announced that the petrol prices would decrease by 10 cents per litre for both 93 and 95 octane grades, effective from Wednesday, December 6. This means that the inland price for 93 octane petrol will be R23.34 per litre, while the 95 octane petrol will cost R23.80 per litre. The coastal price for 93 octane petrol will be R22.74 per litre, while the 95 octane petrol will cost R23.20 per litre.
The main reason for the petrol price drop is the favourable exchange rate between the rand and the US dollar, which has strengthened by about 15 cents on average during the period under review. The international oil prices have also declined slightly, due to the easing of supply concerns and the increase in production by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
However, the petrol price drop is not as significant as it could have been, as the government has increased the margins for wholesalers and retailers by 5.7 cents per litre and 4.9 cents per litre respectively. These margin adjustments are meant to cover the costs of wages, transport, electricity and other expenses incurred by the fuel industry. The government has also increased the Road Accident Fund (RAF) levy by 1 cent per litre, which is used to compensate the victims of road accidents.
The diesel prices have also decreased by 25 cents per litre for both 0.05% and 0.005% sulphur grades1. This means that the inland price for 0.05% sulphur diesel will be R21.69 per litre, while the 0.005% sulphur diesel will cost R21.75 per litre. The coastal price for 0.05% sulphur diesel will be R20.59 per litre, while the 0.005% sulphur diesel will cost R20.65 per litre.