South Africa: Relief at the Pumps

Consumers are in for some relief this month as the Department of Minerals and Energy has announced a decrease in all grades of fuel starting from Wednesday.

The department also announced a reduction in the price of illuminating paraffin and an increase in the price of gas.

The price adjustments are as follows:

Both grades of petrol will decrease by R1.32.

Diesel 0.05% Sulphur will cost 88c less while the price of diesel 0.005% Sulphur will decrease by 91c.

Wholesale illuminating paraffin will cost R1.44 less with the retail price going down by at least R1.92.

The maximum retail price for gas will increase by 57c.

The department said one of the main factors for the reduction is the decrease in the price of Brent crude oil.

"The main contributing factors are: Less demand for crude oil due to recession concerns and a resurgence of COVID-19 in China. The decision by OPEC (Organization of the Petroleum Exporting Countries) and Non-OPEC members to increase oil production. In the absence of supply constraints, crude oil prices might have decreased further.

"The average international product prices of petrol, diesel, Illuminating Paraffin and LPG have decreased during the period under review. LPG prices have increased due higher freight rate during the period under review," the department said.

The temporary reduction in government's fuel levy will fall away this month.

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