South African motorists are in for some relief as petrol prices are set to decrease by R1 per litre on Wednesday. The Department of Mineral Resources and Energy announced the fuel decrease for August.
“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 importation costs,” the department said in a statement
The price of petrol (93 and 95 ULP and LRP) will decrease by R1.32 per litre, 0.05% sulphur diesel by R0.88/l and 0.005% sulphur diesel by 0.91/l. Illuminating paraffin (wholesale) will decrease by R1.44/l and SMNRP for IP by R1.92. However, the maximum LPGas retail price will increase by R0.57.
The slight relief comes as motorists and commuters have been struggling to find a budget to adjust the massive fuel price increases by the Energy Department in July. The massive increases saw petrol for both grades increasing by R2.37 (93) and R2.57 (95) per litre. The price of Diesel increased by R2.30 and R2.31 for both grades per litre, and Illuminating paraffin increased by R1.66.
Minister of Mineral Resources and Energy Gwede Mantashe said the main reason for the fuel adjustments are due to the average Brent Crude oil price decreasing from $115.77per barrel to $105 during the period under review, lower crude oil demand due to recession concerns and Covid-19 resurging in China and OPEC and non-OPEC members deciding to increase oil production.
The minister reminded consumers that the temporary reduction in the general fuel levy comes to an end on 2 August 2022. A R1.50 reduction in the fuel levy was implemented in April and May, then trimmed to 75 cents from July 6.
Source: Eyewitness News, Moneyweb, Fin24, ENCA, image from Eyewitness News: Cape Talk