Welcome reprieve for motorists at the fuel pump
The drop in the fuel price is a result of the strengthening of the Rand against the US Dollar and a decrease in the prices of crude oil
Motorists will get some reprieve at the fuel pumps from Wednesday following an announcement by the Department of Energy of the drop in fuel prices.
As of March 7, the petrol price will drop by 36 cents a litre and between 44 and 47 cents less for a litre of diesel.
According to the Energy Department, the drop in the fuel price is a result of the strengthening of the Rand against the US Dollar and a decrease in the prices of crude oil.
The department said other factors that influence the price of fuel include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs.
“The main contributing factor was the abundance of crude in the market, particularly with growing exports from the US Gulf coast, which kept the price low in the market. Furthermore, the forthcoming widespread refinery maintenance in the Middle East and Asia-Pacific is also muting demand for crude and limiting upward price movement,” said the department.
The fuel prices for paraffin and gas for March 2018 will be also adjusted as follows:
• Illuminating Paraffin (wholesale): 22.00 c/l decrease
• SMNRP for IP: 29.00 c/l decrease
• Maximum LPGas Retail Price: 69.00 c/kg decrease
