Motorists will get some reprieve at the fuel pumps from Wednesday following an announcement by the Department of Energy of the drop in fuel prices.
As of 7 March, the petrol price will drop by 36 cents a litre and between 44 and 47 cents less for a litre of diesel.
According to the Energy Department, the drop in the fuel price is a result of the strengthening of the Rand against the US Dollar and a decrease in the prices of crude oil.
“The Rand appreciated, on average, against the US Dollar from 12.20 to 11.82 Rand per USD during the period under review.
“The average Brent Crude oil price decreased from 69.06USD to 65.05USD per barrel during the period under review. This led to lower prices of petroleum products in the international markets,” said the department.
The department said other factors that influence the price of fuel include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.
“The main contributing factor was the abundance of crude in the market, particularly with growing exports from the US Gulf coast, which kept the price low in the market. Furthermore, the forthcoming widespread refinery maintenance in the Middle East and Asia-Pacific is also muting demand for crude and limiting upward price movement,” said the department.
The fuel prices for paraffin and gas for March 2018 will be also adjusted as follows:
Illuminating Paraffin (wholesale): 22.00 c/l decrease
SMNRP for IP: 29.00 c/l decrease
Maximum LPGas Retail Price: 69.00 c/kg decrease
The fuel prices schedule for the different zones will be published on Tuesday, 6 March 2018. – SAnews.gov.za