Petrol price drop to be expected.
- Staff Writer
- Mar 6, 2018
- 1 min read
Motorists will be paying less for petrol at the pumps from this Wednesday. This is thanks to the rand's promising performance against the US dollar over the past month, the Department of Energy said.
Petrol prices are expected to drop by 36 cents a litre, while diesel will decline by between 44 cents and 47 cents per litre.
The department also said that illuminating paraffin will decrease between 23 cents and 30 cents while liquefied petroleum gas will drop by 69 cents.
During the period under review of petrol prices, the rand gained 38 cents to the US dollar, the department said. “This led to a lower contribution to the basic fuel price on petrol, diesel and illuminating paraffin by 19.33c/l, 19.68c/l and 20.53 c/l respectively,”
Along with the rand appreciating against the US dollar, Brent Crude oil price decreased from $69.06 to $65.05 per barrel during the period under review. This led to lower petroleum product prices in the international markets.
“The main contributing factor was the abundance of crude in the market, particularly with growing exports from the US Gulf coast, which kept the price low in the market. Furthermore the forthcoming widespread refinery maintenance in the Middle East and Asia-Pacific is also muting demand for crude and limiting upward price movement.”
Inland petrol price adjustments.
Posted 6 March 2018 | Staff Writer
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