Petrol price to plunge by R1.84/l

The price of petrol will plummet by R1.84/l on Wednesday, thanks to a stronger rand exchange rate and a sharp fall in international oil prices.

The department of energy said on Sunday that both the 93- and 95-octane grades of petrol will fall by R1.84/l at midnight on 3 December, while the price of diesel will drop by R1.45/lfor 0.05% sulphur content and by R1.47/l for 0.005% sulphur content.

South African fuel prices are regulated by government, not set by the market. They are adjusted monthly.

Energy minister Jeff Radebe said the fall in prices is attributable to the rand appreciating in value against the US dollar from R14.79 to R13.67 during the period under review.

At the same time, brent crude oil fell from $81.15/barrel to $65.79/barrel.

Read: Why SA should get a R2 plus drop in the petrol price

“In line with the application of the regulatory accounts system, the minister of energy has approved a net increase of 7.7c/l in the annual margin adjustments on petrol and net increase of 4.59c/l on diesel and illuminating paraffin wholesale prices…”  — (c) 2018 NewsCentral Media

This article originally featured on TechCentral here.