Home Community Petrol price to decrease

Petrol price to decrease


Consumers will breathe a sigh of relief at the pumps as the price of petrol is set to decrease by between 23 and 32 cents a litre.

The Department of Mineral Resources and Energy (DMRE) said the price of a litre of 93 (ULP and LRP) will come down by 23 cents while a litre of 95 (ULP and LRP) will cost 32 cents less in Gauteng.

From Wednesday onwards, a litre of 95 ULP in Gauteng, which currently costs R15.18 a litre will now cost R14.86 a litre.

In September, the price of petrol increased by 1 cent.

Meanwhile, both grades of diesel (0.05% Sulphur and 0.005% Sulphur) will decrease by 90 and 93 cents a litre, respectively.

The price of illuminating paraffin (wholesale) will decrease by 76 cents.

The price of illuminating paraffin (SMNRP) will decrease by 101 cents, while the Maximum Retail Price for LPGAS will increase by 20 cents per kilogram.

The DMRE said the average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review.

In a statement last week, the Automobile Association (AA) predicted that the price of fuel would come down by between 24 and 33 cents.

“The Rand’s daily average dipped as low as R16.10 to the US dollar on September 18, following a long downward trend which began in the first week of August. However, a steep jump to around R16.90 followed by a brief plateau and a further spike to nearly R17.20 caught watchers unawares, and there is rightly some concern about the Rand’s short- to medium-term trajectory,” said the AA on Tuesday.

The AA noted that the Rand’s weakening profile was mirrored in strengthening international petroleum product prices.

“Almost in lockstep with the Rand, diesel and petrol prices spiked, and then pulled back before starting a further climb. If this trend of a weakening Rand and rising international fuel prices continues, it could be extremely negative for South African fuel users, and we will watch further changes with interest.”

It noted that the trends since early August have been stronger for the Rand and cheaper for oil.

“It is too early to tell whether the spikes in both were a blip or the start of a more sustained reversal, but motorists should continue to be wary given the ongoing instability in both local and global economies,” said the AA.


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