The Department of Mineral Resources and Energy has announced that the prices of all grades of fuel will decreased on Wednesday, 5 March.
The department said in a statement on Tuesday that, based on current local and international factors, fuel prices would be adjusted as follows:
• Petrol 93 (ULP & LRP): 7 cents per litre (7.00 c/l) decrease.
• Petrol 95 (ULP &LRP): 7 cents per litre (7.00 c/l) decrease.
• Diesel (0.05% sulphur): 17.5 cents per litre (17.50 c/l) decrease.
• Diesel (0.005% sulphur): 23.5 cents per litre (23.50 c/l) decrease.
• Illuminating paraffin (wholesale): 6 cents per litre (6.00 c/l) decrease.
• SMNRP for IP: 8 cents per litre (8.00 c/l) decrease.
• Maximum LP Gas Retail Price: 2 cents per kilogram (2.00c/kg) decrease.
The department said one of the main reasons for the fuel price adjustments was the drop in the average Brent Crude oil price from $77.41 to $74.89 during the period under review.
The main contributing factors for the price decline are lower global demand and oversupply from non-OPEC countries.
In addition, the Russia/Ukraine ceasefire negotiations could also result in a possible increase in the global supply of crude oil.
The department said average international petroleum product prices had increased due to refinery shutdowns and maintenance in the US in preparation for the switch to summer fuel grade, while diesel followed the decreasing price trend of crude oil.
“These factors led to higher contributions to the basic fuel prices of petrol and illuminating paraffin by 6.92 c/l and 8.09 c/l respectively, and lower contributions to the basic fuel prices of diesel by 7.66 c/l,” it said.
The rand appreciated on average against the dollar from R18.73 to R18.50 during the period under review compared with the previous period. This led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin of 13.54 c/l, 14.45 c/l and 14.15 c/l respectively. – SAnews.gov.za
