Hefty petrol price drop from 7 September – Here’s how much you’ll pay per litre

The Department of Mineral Resources and Energy (DMRE) announced that both grades of petrol – 93 and 95 octane – will decrease by R2.04 per litre from 7 September.

The prices of diesel (0.05% sulphur) will decrease by R0.56 per litre, while diesel (0.005% sulphur) decreased by R0.46 per litre.

Meanwhile, illuminating paraffin will now cost R1.09 less per litre. The price of LP gas decreases by R1.65 cents per kg.

Fuel prices:

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The department said several international and local factors contributed to the decrease.

Crude oil prices

The department said the average Brent Crude oil price decreased from $105 per barrel to $94 per barrel during the period under review.

“A decreasing trend in oil prices experienced during the period of July and early August due to recession fears and economic slowdown has been countered by declining inventories and supply that is still tight.

“All the lockdowns in China have caused the oil price to fall this year thanks to the well-documented effect of lockdowns on oil demand. Chengdu, a city of 21 million people, is the latest to be lockdown in pursuit of China’s zero-Covid strategy,” the department said.

Rand/US dollar exchange rate

“The rand appreciated slightly, on average, against the US dollar (from 16.87 to 16.70) 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 12.97 c/l, 15.63 and 15.90 c/l respectively.”

Implementation of slate levy

The department said there is also an increase in the slate levy.

“The combined cumulative petrol and diesel slate balances at the end of July 2022 amounted to a negative balance of R 13.168 billion. However, the Department has approved a slate levy increase of 30.66c/l to be implemented into the price structures of petrol and diesel with effect from 7 September 2022.”

“The effective slate levy will be 83.68c/l. This is based on the current over-recoveries and reimbursements of products amounting to R3.6 billion,” the department said.

South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors.