The retail price of both grades of petrol sold in South Africa will dip by 7 cents a litre from Wednesday. (Waldo Swiegers/Bloomberg via Getty Images)
The retail price of both grades of petrol sold in South Africa will dip by 7 cents a litre from Wednesday, while the wholesale cost of diesel will decrease by up to 23.5 cents, the department of mineral and petroleum resources said on Tuesday.
Domestic fuel prices are adjusted monthly, influenced by both global and local factors including the international price of crude oil and the rand exchange rate against the dollar.
The mineral and petroleum resources department noted that, for the period under review, the average Brent crude oil price decreased from $77.41 to $74.89 on the back of continued lower global demand and over-supply from nations that are not part of the Organisation of the Petroleum Exporting Countries.
The department also cited “the Russia-Ukraine ceasefire negotiations which could result in a possible increase in global supply of crude oil” and the fact that the rand appreciated on average against the dollar from 18.73 to 18.50.
The factors backing the case for a price cut were however offset by average international petroleum product prices increasing due to refinery shutdowns and maintenance in the US in preparation for the switching to summer fuel grade.
From Wednesday, 95-grade petrol will cost R22.34 at the pump in Gauteng and R21.55 in coastal areas.
Illuminating paraffin, a relatively cheap energy source for poorer households, will cost 8 cents less per litre, while the cost of liquified petroleum gas will be down 2 cents a kilogram.