Petrol price to drop by over R1 per litre on Wednesday

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Fuel prices will see a large drop on Wednesday, thanks in part to a cooling oil price.

Petrol prices will be cut by R1.32 a litre, for both 93 and 95 unleaded, while diesel prices will be lowered by 88 cents a litre (0.05% sulphur) and 91 cents (0.005% sulphur) a litre, the Department of Mineral Resources and Energy announced on Saturday evening.

In Gauteng, the price of 95 unleaded petrol will be R25.42 a litre from Wednesday - a year ago it was R18.30.

Paraffin prices will decrease by R1.44 a litre.

The maximum LPGas retail price, however, will increase by 57 cents/kg.

In July, fuel prices were hiked by more than 10%.

Local fuel prices are determined in part by international oil prices, as well as the dollar-rand value, as South Africa buys oil in dollars. 

Over the past month, the oil price has weakened, with Brent crude currently at around $110 a barrel. It hit a high of $123 in March, after Russia’s invasion of Ukraine roiled markets. While the rand crashed through R17 to the dollar earlier in July, it is now trading around R16.60.

Countering the positive impact of the weaker oil price is the reinstatement of the full petrol levy for the first time in months.

The Department of Mineral Resources and Energy said the temporary reduction in the general fuel levy of 75 cents per litre announced by the Minister of Finance in consultation with the Minister of Mineral Resources and Energy which was implemented in the price structures of petrol and diesel will come to an end on 2 August 2022.

"As a result, the fuel levy will amount to 394 c/l for petrol and 380 c/l for diesel," the statement said.

The fuel levy reduction, which attempted to cushion consumers from the impact of skyrocketing oil prices, came in to effect in April. The temporary reduction of R1.50 per litre was reduced to 75c per litre in July.

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