The Department of Mineral Resources and Energy has published the official fuel price adjustments for November, showing a substantial increase in all prices. The new prices will come into effect from Wednesday, 3 November 2021.
The Energy Department said that international petrol, diesel and paraffin prices went up over the past few months.
Prices are affected by two main factors – the exchange rate of your rand relative to the dollar and international petroleum product costs, mainly driven by oil prices.
The rand depreciated significantly against the US dollar during the time period. The rand to US dollar exchange rate for the period 01 October 2021 to 27 Oct 2021 was R14.8175 compared to R14.5654 during the previous period.”
Brent crude oil has soared this year as economies recover from the pandemic and amid an energy squeeze marked by shortages of gas and coal, Bloomberg reported.
Bank of America has predicted that Brent crude prices will reach $120 a barrel next year. Brent crude futures rose 99 cents to $84.71 a barrel on Monday, inching towards this target.
These factors led to a higher contribution to the basic fuel prices on petrol, diesel and illuminating paraffin with an increase of 15.93 c/l, 15.53 c/l and 15.42 c/l respectively
Petrol will rise by an even R1.21 per litre, while the price of diesel (0.05% and 0.005% sulphur) will rise by an astonishing 148.2 cents per litre, the department said
The changes are as follows:
- Petrol 95: increase of 121 cents per litre;
- Petrol 93: increase of 121 cents per litre;
- Diesel 0.05%: increase of R1.48 per litre;
- Diesel 0.005%: increase of R1.48 cents per litre;
- Illuminating Paraffin: increase R1.45 per litre.
Slate levy
The petrol and diesel balance at the end of September 2021 is projected to be negative by R1.657 billion
The department said that in line with the provisions of the self-adjusting slate levy mechanism, a slate levy of 15.36 c/l – an increase of 2.2 c/l – will have to be implemented into the price structures of petrol and diesel with effect from 3rd November 2018.
The price of petrol has been steadily increasing since the beginning of 2018 and by November, it will be at a record high. The table below shows how much it would cost to fill up a 55 litres tank based on these calculations:
