Official fuel prices for December – Petrol up, diesel down

The Department of Mineral Resources and Energy (DMRE) has published the official fuel price adjustments for December.

Tomorrow, 7 December, petrol prices are going up by 59 cents a litre whereas diesel prices will go down by a maximum of R1.57 per litre, reports BusinessTech.

These changes take into consideration the whole month’s data including fluctuations in international petroleum product prices, the rand/US dollar exchange rate, the annual hike in margin costs, as well as an increase in the Slate Levy.

With these factors accounted for, South African fuel prices in December are being adjusted as follows, according to the DMRE:

• Petrol 93 – Increase of 59 cents per litre
• Petrol 95 – Increase of 59 cents per litre
• Diesel 0.05% – Decrease of R1.57 per litre
• Diesel 0.005% – Decrease of R1.52 per litre

The retreat in diesel prices follows two consecutive months of increases due to global pressures, such as the Russia-Ukraine war and winter in the Eurozone, which caused the price of this fuel type to skyrocket.

What affects South African fuel prices

The hikes in petrol prices and smaller-than-expected drops in diesel prices are a result of average international prices for these fuels going up during November, alongside local increases to retail margins and the Slate Levy.

The DMRE approved a net increase in annual margin adjustments of 21.26c/l for petrol and 0.67c/l for diesel, whereas a negative balance of R9.697 billion in the country’s Slate Account necessitated an increase to the Slate Levy of 13.14c/l – in line with the seld-adjusting mechanism.

On the bright side, the local currency gained strength against the US dollar during the period, sitting at an average of R17,5338/dollar, compared to the previous month’s R18.1099/dollar.

This led to a lower contribution to the Basic Fuel Prices of petrol and diesel by 40.31 c/l and 48.94 c/l, respectively.

The below table shows how December’s fuel price adjustments will reflect at the station: