Data provided by iNet BFA
Loading...
See More

New Year's petrol cheer on cards

Dec 21 2012 12:03 Francois Williams and Bloomberg

Related Articles

Petrol bonus for motorists

Petrol fuels inflation shocker

Petrol, food prices main inflation risks

11 tips to save on petrol costs

Apartheid ghost lurks at petrol pumps

SA's hands tied on petrol price

 
Cape Town - The price of Brent crude oil fell from its highest level in two weeks on Thursday, amid speculation that US negotiations over the country's budget deficit have made little to no progress over the last few days.

If the rand-dollar exchange rate remains stable, it could translate into another petrol price breather on January 2.

Latest figures from the department of energy show an average over-recovery of 9.3 cents per litre for gasoline and 19.4c/l for diesel since November 30.

Tuesday's over-recovery was 16.9c for petrol and 13.4c for diesel. If this can be maintained until December 26, it could mean a reduction of 11c/l on petrol and 17c/l on wholesale diesel.

South African fuel prices are a calculated on an import parity basis. The formula is based on fuel prices at refineries in Italy, Singapore and the Arabian Gulf.

Shipping costs, cargo insurance and other costs are added, the price is converted from dollars to rands and then local levies such as tax, regulated profit margins, customs, distribution costs and the Road Accident Fund levy are added to calculate the retail price of petrol and the wholesale price of diesel.

The fuel tax changes only once a year, in April. It's a fixed amount in cents and is unaffected by the monthly fuel price adjustment.

This monthly adjustment ensures that South African prices stay in line with prevailing international market prices.

On Thursday, Brent oil futures for February declined by 0.6% in low trading volumes on the London futures market to $109.73 per barrel. The volume of total futures contracts traded on the market was 23% below the average over 100 days.

Brent crude still topped the US oil price benchmark, West Texas Intermediate, by over $20. West Texas Intermediate traded at $89.92 a barrel in New York on Thursday.

The price of Brent crude rose by 2.6% this year.

US oil prices this year on average were $17.42 per barrel lower than Brent, largely due to the increase in the excavation of unconventional oil and gas resources in America.

If the problem of America's so-called fiscal cliff - the simultaneous implementation of budget cuts and tax increases - is not resolved, the anticipated recession could dent the demand for oil and push prices down.

- Sake24

For business news in Afrikaans, go to Sake24.com.



 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

petrol price  |  good news  |  economy
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
19 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilite herself from splurging on feel-good iitems and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...