Cape Town - From midnight on Tuesday you can expect to pay up to R2.04 less for your fuel.
Mineral Resources and Energy Minister Gwede Mantashe on Monday announced a massive adjustment of fuel prices based on current local and international factors, which will come into effect on Wednesday.
Petrol (both 93 & 95 ULP and LRP) will decrease by R2.04 c/l. Diesel (0.05% sulphur) will decrease by R0.56 c/l, while illuminating paraffin will decrease by R0.82 c/l.
Among the main contributing factors is a decreasing trend in oil prices experienced during July and early August due to recession fears and economic slowdown.
Mantashe said Covid-19 lockdowns in China had caused the oil price to fall this year due to the well-documented effect of lockdowns on oil demand.
“The average international product prices of petrol, diesel, illuminating paraffin and LPG have decreased during the period under review.
“The demand for petrol is less than what it usually is during the driving season.
Motorists are driving less due to inflationary pressures, higher interest rates and persistent lockdowns in China.
“This has led to a decrease in the prices of petrol during this period.
“The magnitude of the decrease in diesel is less than that of petrol. The middle distillate market is still tight and there is a looming fuel switch from gas to oil for heating purposes as winter season approaches in the Northern hemisphere.
“This has increased demand for middle distillates. This demand will tighten the middle distillates supply even more which could lead to possible price increases in future,” Mantashe said.
The Automobile Association (AA) earlier this month said despite recent Rand weakness against the US dollar, the average exchange rate against the US currency was still favourable and fuel in the country was still expected to decrease significantly.
“These decreases are certainly welcome and will provide some relief to motorists. Considering the expected decrease to ULP95, for instance, the price for this fuel will drop from its current R25.42/l to R23.07/l.
This is cheaper than the June price of R24.17/l but still significantly higher than R21.84/l May pricing. It is also way off the January pricing of R19.61/l. Nevertheless, any decrease to fuel prices is good news,” the AA said.
Cape Times