Slight drop in price of fuel in September
The Mineral and Petroleum Resources Department says fuel will be cheaper from Wednesday.
The department released the adjustments on Monday.
It's a slight drop in the price of petrol but a relatively significant one for diesel.
On Wednesday, the price for both grades of petrol will go down by 4 cents a litre.
Diesel users will see a 56 cents per litre decrease while Illuminating paraffin will be cheaper by 37 cents a litre.
The department says the drop in fuel prices is mainly due to lower crude oil costs, which fell from 69 to 67 US dollars a barrel during the review period.
ALSO READ: Consumers facing higher electricity prices after Nersa ‘error’
"The main contributing factor to the lower crude oil price is the decision by OPEC to increase production and the uncertainty caused by looming US trade tariffs including secondary tariffs which could affect global economic growth and demand for crude oil."
It says international petroleum product prices also declined, while the rand strengthened slightly against the US dollar.
"The average international petrol prices decreased in line with the decrease in crude oil prices. The prices of diesel and paraffin increased due to low stocks in the US, unplanned refinery shutdowns and closures of refineries in the EU which have resulted in tight supply.
“This led to lower contributions to the Basic Fuel Prices of petrol by 23.49 cents per litre, and higher contributions to the BFP of diesel and illuminating paraffin by 69.94 c/l and 35.57 c/l respectively. The prices of Propane and Butane decreased during the period under review."
Find us on social media
Follow the ECR Newswatch WhatsApp channel here
MORE ON ECR:
