Johannesburg: The Department of Mineral and Petroleum Resources (DMPR) has announced decreases in the price of petrol, diesel, illuminating paraffin, and LP Gas starting Wednesday this week.
According to South African Government News Agency, the price adjustments will see Petrol 93 (ULP and LRP) and Petrol 95 (ULP and LRP) both reduced by 51 cents per litre. Diesel with 0.05% sulphur will decrease by 21 cents, while diesel with 0.005% sulphur will see a 19-cent reduction. Illuminating paraffin will have a 1-cent decrease both wholesale and at the retail level. The maximum retail price of LP Gas will drop by 61 cents, and by 70 cents specifically in the Western Cape.
As of Wednesday, a litre of Petrol 95 (ULP and LRP) will cost R21.12 in Gauteng, whereas on the coast it will be priced at R20.29. The DMPR cited a decrease in the average Brent Crude oil price, which fell from US$67.16 to US$64.14, as a primary reason for the pricing adjustments. This decline is attributed to an oversupply resulting from increased global production and uncertainty from ongoing trade tensions affecting economic growth and demand for crude oil.
The international prices of petrol and diesel mirrored the declining trend of crude oil prices, leading to lower contributions to the Basic Fuel Prices (BFP) for petrol by 39.94 cents per litre and diesel by 8.83 cents per litre. In contrast, illuminating paraffin prices increased, resulting in a higher contribution to BFP by 10.96 cents per litre. Prices for Propane and Butane also decreased during the period under review, the DMPR noted.
Additionally, the Rand appreciated slightly against the USD during this period, moving from R17.49 to R17.29 per USD. This appreciation contributed to lower BFP contributions for petrol, diesel, and illuminating paraffin by 10.60, 11.77, and 11.53 cents per litre, respectively, as reported by the DMPR.