South Africa’s retail petrol price for all grades will drop by only 16 cents a litre (c/l) from June 1, as an extra 6c/l levy for the reduction of the slate with oil companies was added, the Department of Minerals and Energy announced on Friday.
This reduces the price of a litre of petrol to R5,06 from a record R5,22 in Gauteng. The coastal retail price drops to R4,93 a litre from R5,09 a litre.
On a year-on-year basis, the increase in the Gauteng retail petrol price eases to 7,4% from 18,4%, which should have a positive impact on the June year-on-year consumer inflation rate.
The wholesale price of diesel 0,3% sulphur will decline by 16 cents per litre and that of diesel 0,05% sulphur by 17 cents per litre.
The wholesale price of illuminating paraffin will drop by 19 cents per litre while the single maximum national retail price of illuminating paraffin will be cut by 25 cents a litre on the same date.
During the review period, the average international prices of petroleum products declined, while the average rand/dollar exchange rate weakened when compared with the previous period. The average rand/dollar exchange rate for the period was R6,2792, compared with R6,1785 before.
These factors should have resulted in a 23c/l drop in the retail petrol price, but the cumulative petrol slate with the oil companies stood at R697-million at the end of April, so in addition to the normal monthly 1c/l slate levy, an extra 6c/l slate levy was added. — I-Net Bridge