NATIONAL NEWS - Mantashe said the country’s fuel prices were adjusted on a monthly basis, informed by international and local factors.
He said the main reason for the lower oil prices was due to the continuous spread of Covid-19 beyond China and Europe as well as the oil price war that kicked off between Russia and Saudi Arabia at the beginning of the month.
“This has added to investor and traveller concerns and as a result affected the demand for crude oil. Furthermore, failure by the organisation of the petroleum exporting countries (OPEC) to agree on production cuts exacerbated the pressure on the price of crude oil,” the statement said.
International factors included that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, such as shipping costs.
Other reasons for fuel price adjustments were due to international factors such as the rand depreciating against the US dollar, the huge decrease in the prices of crude oil and
local factors such as the increase in fuel and Road Accident Fund levies, the increase in transport costs and the octane differentials between 95 and 93 petrol grades.
“In line with the working rules, to determine the basic fuels prices (BFP), the 95 octane (unleaded) grade is the price-marker grade and the BFP-differentials between 95 and 93 octanes are adjusted on the first Wednesday of each quarter.”
“The retail prices of 95 and 93 petrol octanes will be different in each fuel pricing zone with effect from the 1 April 2020.”
The fuel prices for April 2020 will be adjusted as follow in Gauteng (Zone 9C):
- Petrol (both 93 ULP and LRP): 176 c/l decrease
- Petrol (both 95 ULP and LRP): 188 c/l decrease
- Diesel (0.05% sulphur): 133.70 c/l decrease
- Diesel (0.005% sulphur): 134.70 c/l decrease
- Illuminating paraffin (IP) (wholesale): 183.90 c/l decrease
- Suggested manufacturer retail price for IP: 245.00 c/l decrease
- Maximum LPGas retail price: 378.00 c/kg decrease
The fuel prices schedule for the different zones will be published on Tuesday, 31 March 2020.