The South African government has said that that starting from this Wednesday, fuel prices at the pump would be reduced.
This was said in a statement released on Saturday by Gwede Mantashe, South Africa’s minister of mineral resources and energy.
He claimed that the price change is intended to lessen the strain that rising energy prices are placing on consumers.
Monthly adjustments to fuel prices are made in South Africa based on both global and regional considerations.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs,” Mantashe said.
According to the minister, the cost of gasoline will decrease by ZAR 1.32 ($0.08) per litre for 95-octane and 93-octane fuel, respectively, to ZAR 25.42 and ZAR 24.99.
He said the cost of diesel, which is primarily used by farmers, hauling vehicles, and emergency power generators, will also be reduced by 91 cents for lower-sulfur diesel and 88 cents for high-sulfur fuel.
Mantashe claimed that lower demand for crude oil as a result of recession worries and a comeback of COVID-19 in China were the reasons for the price adjustments.
Another contributing aspect, he continued, was “the decision by OPEC and Non-OPEC countries to raise oil output.”
“The average international product prices of petrol, diesel, Illuminating Paraffin and LPG have decreased during the period under review. LPG prices have increased due to higher freight rates during the period under review.
“The movement in product prices has led to lower contributions to the Basic Fuel Price of petrol ULP 95 by 303.16 c/l, ULP 93 by 297.42 c/l, diesel 500ppm and 50ppm by 267.30 c/l and 271.15 c/l respectively, while the contribution to illuminating paraffin was 249.77 c/l.”
The minister said the depreciation of the rand also instigated the price reduction. In June, the country’s inflation hit a 13-year high of 7.4 percen,” he said.
