The Department of Energy has confirmed that the petrol price for December will be subject to a monster decrease, and one of the biggest recorded in South African history.

It’s taken eight months for the tide to turn – November proved to be a false dawn when forecast price-drops failed to materialise – but the festive season is bearing gifts for the motorists of Mzansi.

Petrol price for South Africa in December 2018
Both grades of petrol (93 and 95) are going down by R1.84. There were rumours that the slate levy – a measure the government take to ensure they don’t lose money in situations like this – would temper the mammoth alterations. However, it does not seem to have taken effect.

During the period the government review the fuel price, they take the average total of their calculations for each day and work out an average. This bit of number crunching helps them come to a decision: Whether they have the chance to raise prices or lower them.

Our situation can be summarised with a quote from a Don McLean classic: “the levy is dry”.

Petrol price for inland regions: R15.22

Petrol price for the coast: R14.65

Diesel is going down by R1.47p/l, taking the average price of the fuel underneath the R15 mark.

Illuminating paraffin is set for a drop of both R1.33 and R1.87, depending on each grade.

Why is petrol getting cheaper?
A severe drop in the international price of oil has had a dramatic impact on what it costs to fuel up in South Africa, and it’s completely changed within the space of a month. Supply has increased, but demand from non-oil rich countries has waned, and the cost of a barrel has been slashed by 20 – 25% since the end of November.

So this month will perhaps be as good as any to hop behind the wheel and get yourself on an extended road trip. Fuel, now 10% cheaper than it was last month, is at the levels we last saw towards the end of April.

The changes come into affect from Wednesday 5 December.

[Source: The South African]