In South Africa, petrol will fall by 1 cent and diesel by more than R1 — Daily Maverick

In South Africa, the price of 95 and 93 petrol is expected to decrease by 1 cent per litre, while wholesale diesel prices are expected to fall by 109.82–119.82 cents per litre. This was reported by the country’s Department of Mineral and Petroleum Resources.

Tax relief

As Daily Maverick reports, a more substantial rise in fuel prices was avoided thanks to a reduction in the fuel levy announced in the previous mini-budget. At the same time, its effect was partly offset by an increase in the so-called slate levy of more than 48 cents, to 135.84 cents per litre.

This levy is applied when the cost of importing crude oil exceeds the amount consumers pay for fuel at filling stations. It reflects the difference between the costs of purchasing and distributing fuel in the country and the funds received from its sale.

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Changes to the fuel levy

From 4 November to 1 December, the fuel levy is expected to be reduced by R3 per litre of diesel and by R1.50 per litre of petrol. Until 5 January 2027, a reduction of R1.50 per litre is envisaged for diesel and R1 per litre for petrol.

The relief will be financed with R10 billion that had previously been transferred to the Central Energy Fund and then returned to the National Revenue Fund and the emergency reserve. Finance Minister Enoch Godongwana called this a temporary tax reduction with a fiscal cost of R10 billion in foregone revenue.

The department also reported that the average Brent crude price rose from $101 to $108 per barrel during the calculation period. The average rand-to-dollar exchange rate was 16.55, compared with 16.21 in the previous period. These indicators, together with taxes and levies, affect retail fuel prices in the country.