The retail prices of both grades of petrol, the wholesale prices of both grades of diesel and illuminating paraffin and the maximum retail prices of liquefied petroleum gas (LP gas) will decrease with effect from Wednesday, 3 December 2014, said the Department of Energy (DoE).
Petrol is set to decrease by 69 cents per litre, and diesel will decrease by 53 cents per litre.
The DoE said that the main contributing factor to the fuel price decreases was the continual drop in the crude oil prices, which fell to $68 (R753) a barrel from $80 (R888.89) per barrel, during the period under review (31 October 2014 to 27 November 2014).
Brent crude oil
"This is the lowest level of Brent crude oil prices in nearly four years, pressured by ample supply [and], slackening demand," said the DoE. Oil prices have decreased by 25% since June.
The determining of the petrol prices is hinged on two factors: the Brent crude oil price and the exchange rate. "The trend depends on the oil price on the market. That is your big trend, and then the exchange rate was in a narrow band the whole time," said Marius Luyt, head of public affairs at the Automobile Association of South Africa (AASA).
"The Brent oil price was very low over time. And then if you look at the Rand – Dollar exchange rate, there was a relief for us in that it didn't jump or spike very high, so if it goes up or higher it will push the petrol price up," said Luyt.
History of prices
Justmoney has tabled the petrol prices expected for Wednesday, 3 December and compared it to the past five months. As the DoE highlighted, petrol prices have steadily been decreasing, with only a slight increase in October.
|5 November||R12,98||R13,16||R12,98||R12,74||R 12,75||R12,75|
Source: Automobile Association of South Africa, prices correct as of December 1, 2014.
Additionally there are also diesel prices, with the expected prices for Wednesday 3 December, 2014. Diesel has also seen a decrease over the past five months, with the biggest difference last month of 60 cents less per litre.