The official fuel prices for December 2019

The Department of Energy has published the official fuel price changes for December, showing a price hike for petrol and a price drop for diesel users this festive season.

The main driver for the price hike in petrol is due to increased costs of international petroleum products, which added 16 cents to the price. This was offset slightly by a stronger rand over the period.

On top of this, the department has also increased the regulatory accounts system margin, which has added a further 12 cents to petrol prices, and 6 cents to diesel and paraffin.

These are the changes that will come into effect at midnight:

• 95 petrol: increase by 22 cents per litre
• 93 petrol: increase by 22 cents per litre
• 0.05% diesel: decrease by 15 cents per litre
• 0.005% diesel: decrease by 16 cents per litre
• Illuminating paraffin: decrease by 18 cents per litre

The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period. The average rand/US dollar exchange rate for the period 01 November 2019 to 28 November 2019 was 14.8037 compared 14.9293 during the previous period.

This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 6.12 c/l, 6.24 c/l and 6.23 c/l respectively.

Regulatory accounts system margin

In line with the application of the Regulatory Accounts System the minister of Mineral Resources and Energy has approved a net increase of 11.6 c/l in the annual margin adjustments on petrol and a net increase of 6.05 c/l on diesel and illuminating paraffin wholesale prices, with effect from 4 December 2019.

For LP gas users, the minister also approved the adjustments to some of the pricing elements of the maximum retail price structure of liquefied petroleum gas (LPGAS) with an adjustment of 69.0 c/kg with effect from 04 December 2019.

“Due to adjustment in the primary transport cost of LP Gas effective 4 December 2019, the LP Gas prices will differ from each zones,” the department said.