Big drop in fuel price
The petrol price is set to decrease by 69 cents a litre on Wednesday.
GOOD news for motorists who might be feeling the pinch after recent interest rates hikes. The Department of Energy has announced that from 2 September, the petrol price is to decrease.
Based on current local and international factors, the fuel prices for August 2015 in the South African market will be adjusted, with petrol (both 93 and 95) decreasing by 69.00 cents/litre, diesel (0.05% sulphur) will decrease by 54.00 cents/ litre, diesel (0.005% sulphur) will decrease by 51. cents/ litre, illuminating paraffin (SMNRP) will decrease by 55.00 cents/litre, illuminating paraffin (wholesale) will decrease by 74.00 cents/litre and liquefied petroleum gas (LPG) will decrease by 115.00 cents/kilogram.
According to the department, the decrease in the prices of the petroleum products is due mainly to the continued drop in the crude oil prices during the period under review. The price of Brent crude dropped to about $46.93 per barrel (on average) due mainly to global supply glut (oversupply).
Furthermore, the international prices for all petroleum products decreased on average during the period under review, following the drop in crude oil prices. The weakening Rand reduced the over recovery on the Basic Fuel Price by more than 20cpl. The Rand fell to above $13.00 during the current fuel price review period, as a result of lower prices for resources that account for more than half of exports.
The Minister of Energy, Tina Joematt-Pettersson has approved an increase in the retail margin of petrol of 4.6cpl to cater for the salary increase of nine per cent for pump attendants and cashiers in line with the Motor Industry Bargaining Council (MIBCO) agreement of September 2013. This money must be ring-fenced for the wages of the forecourt attendants and cashiers.
