Fuel prices to be reduced by 9 cents from Wednesday

By ANA Reporter Time of article published May 1, 2021

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JOHANNESBURG - South Africa’s petrol price will dip by nine cents a litre from Wednesday while that for diesel will decrease by up to 31 cents, the mineral resources and energy department said.

In a statement dated Friday but sent to the media on Saturday, the department said the retail price of illuminating paraffin, on which many South Africans still rely for cooking and lighting, would be 30 cents lower from May 5.

The retail cost of liquefied petroleum gas -- used as fuel in heating appliances, cooking equipment and vehicles -- will drop by an even sharper margin of R1.72 a litre.

South Africa retrospectively adjusts fuel prices each month based on global oil prices and the rand exchange rate. Price changes are adjusted in such a manner that the over- or under-recovery of procurement costs during the prior month is accounted for in the following month.

During the current period under review, the average international product prices for petrol and illuminating paraffin increased whilst that of diesel decreased, the mineral resources and energy department said in its statement.

The rand appreciated against the United States dollar, averaging 14.4480 per greenback between March 31 and April 29 compared with 14.9829 during the previous period.

“This led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 26.31 c/l (cents per litre), 24.10 c/l and 23.58 c/l respectively,” the department said.

- African News Agency (ANA)

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