By Bahle Gama
Motorists will breathe a sigh of relief upon learning that fuel prices will decrease effective on November 3.
In a statement issued on Tuesday by the Principal Secretary (PS) in the Ministry of Natural Resources and Energy Dorcas Dlamini, emaSwati were informed that Unleaded Petrol 95 (ULP 95) will decrease by E2 per litre, whilst Diesel 50 ppm and Illuminating Paraffin will decrease by E1 per litre.
According to the PS, the fuel decrease for all products is mainly due to an increased fuel supply in the market which led to decreased global fuel prices, “as a result, all the products are carrying an over recovery or profit hence necessitating a price decrease.”
In September, the Brent crude oil price traded at an average of E1 819.19 (US92.56) a barrel, compared to an average of E1 695.98 (US$90.09) a barrel in October.
The Ministry stated that the Lilangeni/Dollar exchange rate depreciated and averaged E19.09 in October compared to E18.78 realised in September.
On October 6, a fuel increase was affected in the country.
The increment was announced by Acting PS Sicelo Nxumalo who informed the public that Unleaded Petrol would increase by 50 cents per litre, whilst Diesel 50 ppm and Illuminating Paraffin increased by E1.30 per litre respectively.
The Acting PS explained that the fuel price increase was a result of the significant increase in international fuel prices coupled with the weaker Lilangeni/Dollar exchange rate experienced in September 2023.
He said the situation led to huge deficits in the local fuel products, necessitating the price increase.
In the new announcement by the PS on Tuesday, the public was urged to use fuel efficiently as the international oil markets and the Lilangeni/Dollar exchange rate remain highly volatile.
Meanwhile, on October 30, South Africa Minister of Mineral Resources and Energy Gwede Mantashe, announced the adjustment of fuel prices based on current local and international factors which were effected on November 1.
South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs.
The cumulative slate balance on petrol and diesel at the end of September reportedly had a negative balance of E6.2 billion.
This resulted in the slate levy increasing from 21.92 cents per litre to 52.62 cents per litre which was implemented in the price structure of petrol and diesel that was effected on November 1 by the neighbouring country.