Petrol price to come down 24 c/l

Pretoria – Motorists are expected to benefit from declining petrol prices in April, the Department of Energy (DoE) indicated in a statement issued on Friday.

Unleaded and leaded 95 petrol is expected to come down 24 cents per litre (c/l) and that of 93 petrol will come down 22 c/l.

The wholesale price of diesel will come down 10.50 c/l. The whole sale price of illuminating paraffin will decrease by 48.50 c/l and the single maximum national retail price of illuminating paraffin will decrease 65 c/l.

The retail price for liquefied petroleum gas will come down 101 cents per kilogram.

The decline is in in line with decreasing international petroleum product price, the DoE said.

The among the main reasons for the adjustments are attributed to the crude oil prices, which have come down from $55.15 per barrel to $51.52 per barrel, as production improved in Libya and due to increasing commercial stocks in the US, explained the DoE.

“The crude oil market has declined despite indications on that OPEC (Organization of the Petroleum Exporting Countries)  members increasingly favour extended production cuts but want the backing of non-OPEC oil producers,” said the DoE.

“Oil Traders have indicated that OPEC cuts would need to last into the fourth quarter to achieve the group's goal of reducing record oil stockpiles in industrialised nations to their five-year average.”

Further the rand-dollar exchange rate also contributed to the decline. For the period under review, the rand strengthened against the US dollar from R13.28/$ to R12.90/$. “The emerging markets were supported by strong metal prices,” said the DoE.

The fuel levy and Road Accident Fund levies which increased by 30 c/l and 9 c/l respectively were also factored into the price changes, the DoE added. 

READ: Rand eating away at April's expected petrol price drop - AA

Fin24 previously reported on the Automobile Association’s (AA), expectation of fuel prices to be lower than in March. 

According to the AA, international petroleum prices continued to ease during March on the back of increased global oil stocks, while the rand performed strongly against the US dollar over the same period, "notwithstanding recent events".

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