Petrol price to drop on Wednesday

Sunday, April 2, 2017

Pretoria - Motorists are in for a relief this month as the petrol price is set to decrease by between 24 and 22 cents on Wednesday.

The Department of Energy on Saturday announced that petrol prices would come down, with a litre of 95 ULP and LRP set to drop by 24 cents a litre.

In Gauteng, motorists who paid R13.54 for litre of 95 ULP in March will now pay R13.30 for litre of 95 ULP.

The price for a litre of 93 ULP and LRP will drop by 22 cents a litre, while that of Diesel 0.05% Sulphur will drop by 10.50 cents a litre. The price of Diesel 0.005% Sulphur will also drop by 10.50 cents a litre, while the wholesale price for Illuminating Paraffin will drop by 48.50 cents.

The Single Maximum National Retail Price (SMNRP) for Illuminating Paraffin will see a 65 cents a litre decrease.

Meanwhile, the maximum Retail Price for LPGas will decrease by 101 cents.

The department said the average international product prices of Petrol, Diesel and Illuminating Paraffin decreased during the period under review.

Briefing media following the Monetary Policy Committee (MPC) meeting on interest rates, Reserve Bank Governor Lesetja Kganyago said the petrol price was likely to drop in April due to international oil prices having declined.

This followed increased oil inventories and weak compliance with the OPEC -brokered deal to restrict output, and an increase in shale gas production in the US.

“Although Brent crude oil prices increased by about 10% in the wake of this agreement, these gains have been largely reversed, with oil prices back in the region of US$50 per barrel for the past three weeks. The impact on the domestic petrol price will be evident in April when a reduction is expected, despite the 39 cents increase in the Road Accident Fund and fuel levies provided for in the February budget,” said Kganyago on Thursday. –

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