South Africans will, for a change, breathe a huge sigh of relief following the announcement that the price of petrol will drop in August.
The Department of Mineral Resources and Energy has welcomed the reduction of international petroleum product prices, including crude oil prices. In a statement on Tuesday, the department said this will result in a “sizeable” reduction in fuel prices including paraffin.
According to data released by the Central Energy Fund, reductions of between R1.19 and R1.22 per litre of petrol are expected in August. Diesel price could also drop by more than 80c per litre.
On Monday, the department said the price of Brent crude oil was hovering around $105 (R1 768) a barrel, a reduction on average of about 10% compared with the average price for June 2022.
In the past four months, the department took a decision to cushion South Africans from the vagaries of the oil market and the full impact of the high international oil prices. From April to July 5, a temporary reduction in the general levy of R1.50 per litre of petrol was introduced. This was reduced to 75c per litre from July 6 to August 2.
The department said on Tuesday: “As was undertaken in April 2022, consultation on the introduction of the price cap for 93 octane fuel has formally been initiated. This price cap will allow for the fuel suppliers who can pass the benefit to the consumer to do so.”
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