/ 1 August 2008

Petrol price to decrease by 27 cents

The retail price of petrol will decrease on average by 27 cents a litre on August 6, the Department of Minerals and Energy Affairs announced on Friday.

It said the actual decreases in the pump prices of all grades of petrol would differ due to the rounding off of pump prices to accommodate the dispensers that could not display four-digit numbers.

So in Gauteng, for instance, the pump prices would decrease by 30 c/l, it said.

The decrease follows an increase last month of between 69 to 75 cents a litre to record levels of between R10,40 and R10,70. The price of petrol now drops to R10,40 rand a litre in Gauteng and to R10,10 in coastal areas.

Diesel prices will also decrease next week but paraffin prices will increase.

Diesel 0,05% sulphur decreases by 16 cents and 0,005% by 17 cents.

Wholesale paraffin increases by 3,4 cents and illuminating paraffin by four cents.

Diesel in Gauteng now costs R11,27 a litre and R11,13 at the coast.

During the period under review, the average international product prices of petrol decreased, whilst diesel and illuminating paraffin increased, the department said.

The average rand/US dollar exchange rate strengthened when compared to the previous period. The average rand/US dollar exchange rate for the period 27 June 2008 to 31 July 2008 was 7,6814 compared to 7,9352 during the previous period.

The department also announced that the Minister of Minerals and Energy Affairs had approved an increase of 5,4 c/l in the wholesale margin applicable in the price structures of all grades of petrol, all grades of diesel and illuminating paraffin with effect from August 6.

The National Energy Regulator of South Africa (Nersa) has, in terms of the provisions of the Petroleum Pipelines Act also set revised petroleum pipeline transport tariffs with effect from August 6.

These revised petroleum pipeline transport tariffs will be implemented into the price structure of petrol and diesel. – Sapa