By Thapelo Molefe
The petrol prices will drop by 28 cents per litre for both 93 and 95 octane grades on Wednesday, according to the Mineral and Petroleum Resources Department.
However, diesel users will see a steep rise, with an increase of 65 cents per litre for 0.05% sulphur and 63 cents per litre for 0.005% sulphur. Illuminating paraffin will also go up by 32 cents per litre wholesale, while the retail price rises by 43 cents.
These adjustments are based on current local and international factors.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, such as shipping,” Minister Gwede Mantashe said on Tuesday.
Brent Crude oil prices saw a marginal decrease from $69.36 to $69.06 per barrel. The department attributed this to increased production by OPEC and the uncertainty caused by looming US trade tariffs, including secondary tariffs which could affect global economic growth and demand for crude oil.
The decrease in petrol prices comes as a result of the lower international petroleum product prices, but diesel and paraffin prices are climbing due to low stocks in the US, and unplanned refinery shutdowns and closures in the EU.
The department also noted a small appreciation of the rand, from R17.84 to R17.76 against the US dollar during the review period, which contributed to lower contributions to the Basic Fuel Prices of petrol by between 4.00 – 5.00 cents per litre on all products.
INSIDE POLITICS