By Lehlohonolo Lehana.
The Department of Mineral Resources and Energy (DMRE) minister Gwede Mantashe announced that the price of 93-octane will decrease by 22 cents per litre (c/l), while 95-octane petrol will also cost 22c less per litre.
The price of diesel (0.05% sulphur) decreases by 42c/l, while diesel with 0.005% sulphur goes down by 41c/l.
Meanwhile, illuminating paraffin will cost 31c less per litre, while the price of LP gas increases by 46c/kg.
Mantashe said, several factors, including the international petroleum product prices and the rand/US dollar exchange rate, contributed to the decrease in petrol and diesel prices.
“The average international petroleum product prices of petrol and diesel followed the decreasing trend of crude oil prices, while the price of LPG increased due to higher freight (shipping costs) during the period under review.
“These factors led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 51.06 cents per litre (c/l), 71.28 c/l and 61.32 c/l respectively,” added Mantashe.
The minster said, the average Brent Crude oil price decreased from $71.04 to $66.40 during the period under review.
“The tariff and trade war initiated by the US which has raised global economic recession concerns and a possible lower demand for crude oil, and oversupply of oil from non-OPEC countries and the anticipated increase in oil production by OPEC+ members.”
He said, the rand depreciated on average, against the US dollar (from R18.30 to R18.84 per US dollar) during the period under review when compared to the previous one.
“This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 29.13 c/l, 30.34 c/l and 30.24 cents per litre (c/l) respectively”.