Media statement issued by the Department of Energy on the adjustment of fuel prices effective from 04 January 2017. The Department of Energy informs the public of the fuel price adjustments for January 2017. South Africa’s fuel prices are adjusted on a monthly basis, 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 shipping costs.
The main reasons for the fuel price adjustments are due to: The contribution of the Rand/US Dollar exchange rate. The Rand strengthened very slightly against the US Dollar from R13.91 to R13.87, on average, during the period under review when compared to the previous one. The increase in the prices crude oil, on average, during the period under review. A key factor that contributed to the increase in the prices of crude oil was the fact that OPEC members agreed to cut production by 1.2 million barrels per from 1 January 2017 during their meeting that was held in Vienna, Austria, on 30 November 2016. Furthermore, Russia and other Non-OPEC producers also agreed to cut production by 600 thousand barrels per day. The increase in the prices of petrol, diesel and illuminating paraffin, on average, in the international markets during the period under review. The Basic Fuel Price (BFP) of all the products increased in line with the increase in the price of crude oil.
Adjustment to the Octane Differential between 95 and 93 Octane. In line with the Working Rules to determine the Basic Fuels Prices, the 95 octane (unleaded) grade is the price-marker grade and the BFP-differentials between 95 and 93 Octanes will be adjusted on the first Wednesday of each quarter. The 95/93 octane price differential will be adjusted with effect from 04 January 2017.
