Petrol and diesel prices are expected to decrease for the second month in a row.
With motorists struggling to recover from a series of fuel price increases in 2022, September is expected to provide some respite for the second month in a row.
According to the most recent Central Energy Fund data, a stronger rand and lower international petroleum costs point to an R2.63/l drop in the retail price of 95 octane unleaded petrol, an R2.48 drop for 93 octane unleaded, and an R2.37 drop in the wholesale price of diesel in September.
This comes after an R1.32/l price cut for both grades of petrol in early August, while the wholesale price of high sulphur diesel (0.05%) fell by 88c and low sulphur diesel (0.005%) fell by 91c. The price of illuminating paraffin has dropped by R1.44/l.
The reductions occurred despite the reimposition of the full R1.50/l fuel levy in early August, following the government’s two-month R1.50 reduction in the petrol and diesel levy in April and May, which was adjusted to 75c/l in June and July.
Fuel prices are adjusted on the first Wednesday of each month, and the department of mineral resources and energy stated that the reductions were made possible by lower international fuel prices. Brent crude is currently trading around $100 per barrel, having peaked at $123 earlier in 2022. The rand has also risen to around R16.30 to the dollar, from more than R17 in July.
Fuel price decreases expected to bring relief
Motorists have had an expensive year, with fuel prices reaching record highs in July after a series of increases, and the expected price cuts will help ease their financial burden.
Gwede Mantashe, the minister of mineral resources and energy, gazetted a notice on July 22 proposing a price cap on 93 octane gasoline, which would allow fuel retailers to discount prices, allowing motorists to shop around for the best deal, as they do for diesel. The retail price of gasoline is set by the government, and any other price is illegal.
The public had 30 days to respond to the notice.
Source:Â businesslive.co.za
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