Fuel Price Adjustment. South Africa’s fuel prices are adjusted on a monthly basis, informed by current international and local factors.
The Rand depreciated, on average, against the US Dollar (from 14.97 to 16.43 Rand per USD) during the period under review when compared to the previous one. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 40.00 c/l, 46.62 c/l and 42.26 c/l respectively.
Fuel Price Adjustment
The average Brent Crude oil price decreased from 55.95 USD to 35.25 USD per barrel during the period under review. The main reason for the lower oil prices is due to the continuous spread of the COVID-19 even in countries outside China. This has added to investor and traveler concerns and as a result, affected the demand for crude oil. Furthermore, failure by OPEC to agree on production cuts exacerbated the pressure on the price of crude oil.
The increase in the Fuel and Road Accident Fund Levies by 16.0cpl and 9.0cpl, respectively, as announced by the Minister of Finance in his Budget Speech on the 26th of February 2020, will be effected into the prices of this month. Fuel Price Adjustment changes occur on a monthly basis.
The Minister of Mineral Resources and Energy has approved the implementation of revised zone differentials into the price structures of petrol, diesel and illuminating paraffin (IP) with effect from the 1st of April 2020. These zone differential adjustments are based on the Vehicle Cost Schedule 17 of the Road Freight Association (RFA) published in October 2019 (7.6 percent increase) and the approved petroleum pipeline transport tariffs announced by the National Energy Regulator of South Africa (NERSA) on the 26th of February 2020 (11.6 percent increase). The magnitude of the increases in the revised zone differentials will differ between fuel pricing zones and will be published in the fuel price schedule for April 2020. For example, the transport costs for petrol and diesel will increase by 6.30 c/l in Gauteng and 0.20 c/l in coastal areas.
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 1st of April 2020.