Expect Substantial Petrol Price Drop

Expect Substantial Petrol Price Drop

The retail price of both 93 and 95 octane unleaded petrol will decrease by 69c per litre on Wednesday‚ the Central Energy Fund announced on Friday 28 August.

It said the decrease in the petrolprice was attributable mainly to the continued drop in the crude oil price during the period under review. The price of Brent crude dropped to about $46.93 a barrel on average‚ due mainly to a global supply glut‚ it added.

“Furthermore‚ the international prices for all petroleum products decreased on average during the period under review‚ following the drop in crude oil prices. The weakening rand reduced the over-recovery on the basic fuel price by more than 20c/l. The rand fell to above $13 during the current fuel price review period‚ as a result of lower prices for resources that account for more than half of exports.”

This means that a litre of petrol will now cost R12.57 in Gauteng and R12.14 at the coast. The Department of Energy noted that Energy Minister Tina Joemat-Pettersson had approved an increase in the retail margin of petrol of 4.6c/l to cater for the salary increase of 9% for pump attendants and cashiers‚ in line with the Motor Industry Bargaining Council agreement of September 2013.

“This money must be ring-fenced for the wages of the forecourt attendants and cashiers‚” it said. The Central Energy Fund also announced on Friday that the price of diesel would decrease by 54c/l in the case of 0.05% sulphur fuel and 51c for 0.005% sulphur fuel. Illuminating paraffin will decrease by 55c/l while wholesale illuminating paraffin will decrease by 74c/l. Liquefied Petroleum Gas will decrease by 115c per kilogram.