South Africans Set To Breathe Sigh of Relief As First Petrol, Diesel Price Cuts Since January Set

• Petrol and diesel prices in South Africa are set to drop on Wednesday, 7 August, for the first time since January
• Motorists can expect to fork out less at the fuel pump, with the downgrade attributed to a stronger rand to the dollar
• Other factors, including reduced production from Canada and the decline in US inventories, have been cited for the drops

JOHANNESBURG — South Africans are finally in for some relief at the fuel pump — the lowest levels since January — amid looming petrol and diesel price drops.

The downgrade is attributed to a stronger rand, as motorists can expect to fork out 15c less for a litre of unleaded petrol 93 and 95.

Relief at the pump as cuts loom

The latest cuts translate to R23.11 per litre of petrol 95 in Gauteng and R22.32 in South Africa's coastal provinces.

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The wholesale diesel price will be adjusted to R20.38 a litre, while the price in coastal provinces will be R19.59.

Overall, petrol and diesel prices are marginally higher than at the same time last year, much to the chagrin of motorists and daily commuters.

Respectively, at the same time last year, 95 unleaded petrol and diesel cost R22.83 and R20.21 in Gauteng.

The revised prices are set to kick in on Wednesday, 7 August.

As with the two commodities, wholesale diesel prices are also expected to plummet, with 0.005% sulphur dropping by 17c and 0.05% sulphur dropping by as much as 28c, News24 reported.

Multiple contributing factors attributed

Meanwhile, illuminating paraffin's wholesale price will be slashed by 22c/litre.

As oil is priced in dollars, South Africa's fuel prices are largely determined by international oil and fuel costs and the rand/dollar exchange.

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The rand firmed over the past month from an average of R18.44 to the dollar to R18.23.

The Mineral Resources Department cited various factors, including reduced production from Canada due to the wildfires and the decline in US inventories, for the price drops.

"[This is further catapulted by] tensions in the Middle East and continued production cuts by OPEC [Organisation of the Petroleum Exporting Countries]," the department said in a statement.

Source: Briefly News