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In a welcome development for consumers, fuel prices in South Africa are set to decrease on Wednesday, bringing relief to motorists across the country. This reduction will see petrol and diesel prices drop to levels last recorded in the first half of 2023.
Both grades of unleaded petrol, 93 and 95, will be reduced by 92 cents per litre. Additionally, the wholesale prices of diesel will see a significant decrease, with a reduction of R1.05 per litre for diesel with 0.005% sulphur content, and a 79 cents reduction for diesel with 0.05% sulphur content. The wholesale price of illuminating paraffin will also be reduced by R1.03 per litre.
These price cuts will bring the price of petrol (95) in Gauteng down to R22.19 per litre, while on the coast, it will drop to R21.40 per litre. These are the lowest levels seen since February 2023.
The wholesale price of diesel in Gauteng will decrease to R19.59 per litre, with coastal regions seeing a drop to R18.80 per litre, marking the lowest diesel prices since June 2023.
Fuel prices in South Africa are primarily influenced by international oil prices and the exchange rate of the rand against the US dollar, as oil is traded globally in dollars.
Over the past month, the average price of Brent crude oil fell from $83.55 per barrel to $78.54 per barrel.
“The main contributing factors are the increased production from major oil-producing countries despite lower demand concerns, and the anticipated interest rate cuts by the US Federal Reserve,”
the Department of Mineral Resources explained in a recent statement.
In addition to the drop in oil prices, the rand has also strengthened slightly over the past month, moving from an average of R18.23 to the dollar to R18.05.
These adjustments in fuel prices are set to take effect on Wednesday, providing some much-needed financial relief to South African consumers.
This decrease in fuel prices could have a broader impact on the economy, potentially lowering transport costs and easing inflationary pressures in various sectors. However, it remains to be seen how long these lower prices will persist, given the volatility of global oil markets and exchange rates.
Motorists and businesses alike will be watching closely, hoping that this reduction is the start of a more sustained period of lower fuel costs in South Africa.
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