Mineral Resources and Energy Minister Gwede Mantashe has announced that both grades of petrol will decrease by 10 cents a litre on Wednesday.
The price of petrol 93 (ULP and LRP) and 95 (ULP and LRP) will decrease by 10 cents respectively while the price of diesel (0.05% sulphur) will increase by 20 cents and the price of diesel (0.005% sulphur) by 21 cents.
The price of illuminating paraffin (wholesale) will go up by 20 cents and the price of SMNRP for IP by 26 cents.
The maximum retail price for LPGas will decrease by 143 cents per kilogram.
“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, e.g. shipping costs,” the minister said.
The main reasons for the fuel price adjustments are due to crude oil prices, international petroleum product prices and the rand/US$ exchange rate.
The average Brent Crude oil price increased from US$64.16 to US$66.00 per barrel during the period under review.
The oil prices remain at high levels as the season for oil demand is approaching and the lockdown restrictions are lifted in most European countries and the United States.
“The movement in international refined petroleum product prices of diesel and illuminating paraffin followed the increasing trend in crude oil prices. This led to higher contributions to the basic fuel price of petrol, diesel and illuminating paraffin by 6.28 c/l, 35.52 c/l and 36.67 c/l respectively,” the minister said.
Mantashe said the rand had appreciated, on average, against the US dollar (from 14.48 to 14.11) during the period under review.
“This led to lower contributions to the basic fuel prices of petrol, diesel and illuminating paraffin by 17.14 c/l, 16.32 c/l and 15.96 respectively,” he said. – SAnews.gov.za
