/ 20 December 2004

Petrol price to drop by 45 cents a litre

The fuel price is expected to drop by 45 cents a litre from January 5, the Department of Minerals and Energy said on Monday.

Unleaded petrol should drop by 45 cents a litre, diesel with a sulphur content of 0,3% by 36 cents at wholesale, diesel with 0,05% sulphur by 38 cents and illuminating paraffin by 46 cents a litre wholesale.

The single maximum national retail price for illuminating paraffin should drop by 61 cents a litre.

The department attributed the decrease to a drop in international crude oil and refined petroleum products during the fuel-price review period of November 26 to December 13.

The department warned that these prices remain volatile and have since increased.

The stronger average rand/dollar exchange rate, compared with the previous review period, contributed significantly to the over-recoveries currently experienced on South African fuel prices.

Last month, petrol of all octanes dropped by 19 cents per litre. — Sapa