All grades of fuel are set to decrease this week, bringing relief to cash-strapped South African consumers.
This was announced by the Department of Minerals and Petroleum Resources on Monday.
The price decreases are as follows:
• Petrol 93 (ULP & LRP): 92 cents decrease;
• Petrol 95 (ULP & LRP): 92 cents decrease;
• Diesel (0.05% sulphur): 79 cents decrease;
• Diesel (0.005% sulphur): R1.05 decrease;
• Illuminating paraffin (wholesale): R1.03 decrease;
• Single maximum national retail price for illuminating paraffin: R1.38 decrease; and
• Maximum LPGas retail price: 10 cent decrease.
This means that a litre of 95 petrol, which currently costs R23.11 in Gauteng, will now cost R22.19 cents as of Wednesday.
Factors leading to adjustments
In a statement on Monday, the department explained the international and local factors leading to the price adjustments.
“The average Brent crude oil price decreased from $83.55 (R1 492) to $78.54 per barrel during the period under review,” said the department.
“The main contributing factors are the increased production from major oil-producing countries despite lower demand concerns and the anticipated interest rate cuts by the US Federal Reserve.
“The average international petroleum product prices decreased on average during the period under review in line with lower crude oil prices.”
Rand appreciates against dollar
The department explained further: “This led to lower contributions to the basic fuel prices of petrol by 85.59 cents a litre and 78.40 cents a litre, diesel by 93.55 cents a litre and 67.63 cents a litre, and illuminating paraffin by 91.86 cents a litre, respectively.
“The rand appreciated on average against the US dollar [from R18.23 to R18.05 per US dollar] during the period under review when compared to the previous one.
“This led to lower contributions to the basic fuel prices of all products by over 10 cents per litre,” the department said.
The price adjustments are expected to take effect on Wednesday. – SAnews.gov.za
