REMINDER: Petrol price breather for motorists

Cape Town - Motorists have been given a breather at the petrol pumps in June, following the Department of Energy's latest announcement on the fuel price.

The price of all grades of petrol will decrease by 25c from next Wednesday, while the price of diesel will drop by 23c, the department said.

The strengthening of the rand against the US dollar was cited as the main reason for the decrease.

The petrol price relief follows an increase of 30c a litre in May.

The rand’s advanced against the US dollar during most of May, with further support from retreating international petroleum prices, will help motorists at the pump next month, the Automobile Association (AA) explained earlier this week.
 
"Both of these factors have contributed to the reduction in the fuel price," the AA said in a statement on Monday.

The rand traded at R12.82 at close of local trade on Friday, while Brent crude was selling at $50.65 a barrel.

INFOGRAPHIC:Breaking down the petrol price

OPEC's decision to continue its production cut for another nine months showed that there was concern in oil producing nations about a continued world oversupply of oil, the AA said.

“This could mean a period of relative price stability. On the home front, the Association said the background political noise affecting the rand continued to play a role,” it said.

"With political uncertainty set to continue, our medium-term outlook for the fuel price is that lower international petroleum prices will be key to maintaining local fuel price stability if the rand weakens again," the AA said.

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