Mineral Resources and Energy, Minister Gwede Mantashe has announced that both grades of petrol will decrease by 10 cents a litre on Wednesday (June 2).
The price of petrol 93 (ULP and LRP) and 95 (ULP and LRP) will decrease by 10 cents respectively while the price of diesel (0.05% sulphur) will increase by 20 cents and the price of diesel (0.005% sulphur) will increase by 21 cents.
The price of illuminating Paraffin (wholesale) will increase by 20 cents and the price of SMNRP for IP will increase by 26 cents.
The Maximum Retail Price for LPGas will decrease by 143 cents per kilogram.
Rand performance has been cause to decrease
“South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local 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, e.g. shipping costs,” the Minister said.
The main reasons for the fuel price adjustments are due to crude oil prices, international petroleum product prices and the Rand/US Dollar exchange rate.
“The average Brent Crude oil price increased from 64.16USD to 66.00USD per barrel during the period under review.
The oil prices remain at high levels as the season for oil demand is approaching, and the lockdown restrictions are lifted in most European countries and the United States of America
“The movement in international refined petroleum product prices of diesel and illuminating paraffin followed the increasing trend in crude oil prices. This led to higher contributions to the basic fuel price of petrol, diesel and illuminating paraffin by 6.28 c/l, 35.52 c/l and 36.67 c/l respectively,” the Minister said.
Mantashe said the Rand appreciated, on average, against the US Dollar (from 14.48 to 14.11 Rand per USD) during the period under review when compared to the previous one.
“This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 17.14 c/l, 16.32 c/l and 15.96 respectively,” he said