November price decrease for petrol and diesel

The price of petrol, diesel, illuminating paraffin and LP Gas will decrease from Wednesday this week (Image source: © 123rf 123rf)

The Department of Mineral and Petroleum Resources (DMPR) has announced the following price adjustments will apply:

• Petrol 93 (ULP & LRP): 51 cent decrease.
  
• Petrol 95 (ULP & LRP): 51 cent decrease.
  
• Diesel (0.05% sulphur): 21 cent decrease.
• Diesel (0.005% sulphur): 19 cent decrease.
  
• Illuminating Paraffin (wholesale): 1 cent decrease.
  
• Single Maximum National Retail Price for Illuminating Paraffin: 1 cent decrease.
  
• Maximum Retail Price of LP Gas: 61 cent decrease and 70 cent decrease in the Western Cape.

A decreasing trend

“The average Brent Crude oil price decreased from $67.16 to US$64.14 during the period under review.

“The decrease in the price of crude oil is due to oversupply because of increased global production as well as uncertainty caused by continued trade tensions, which could affect economic growth and demand for crude oil,” says the DMPR.

“The average international prices of petrol and diesel followed the decreasing trend of crude oil prices. “This led to lower contributions to the Basic Fuel Prices [BFP] of petrol by 39.94 cents per litre (c/l) and diesel by 8.83 c/l.

“On the other hand, illuminating paraffin prices increased and resulted in a higher contribution to BFP by 10.96 c/l. “The prices of Propane and Butane decreased during the period under review,” the DMPR explains.

Rand appreciates against dollar

Furthermore, the rand appreciated slightly against the dollar during the period under review.

“The rand appreciated on average, against the [USD], from R17.49 to R17.29 per USD during the period under review when compared to the previous one.

“This led to lower contributions to the Basic Fuel Prices of petrol by 10.60 c/l, diesel by 11.77 c/l and Illuminating paraffin by 11.53 c/l, respectively,” the DMPR says.