South African consumers are in for some relief this month as the Department of Minerals and Energy has announced a decrease in all grades of fuel starting from Wednesday… although it’s not as much as the opposition party believes it should be.
The department also announced a reduction in the price of illuminating paraffin and an increase in the price of gas.
The South African fuel price adjustments are as follows:
- Both grades of petrol will decrease by R1.32.
- Diesel 0.05% Sulphur will cost 88c less while the price of diesel 0.005% Sulphur will decrease by 91c.
- Wholesale illuminating paraffin will cost R1.44 less with the retail price going down by at least R1.92.
- The maximum retail price for gas will increase by 57c.
The department said one of the main factors for the reduction is the decrease in the price of Brent crude oil.
“The main contributing factors are: Less demand for crude oil due to recession concerns and a resurgence of COVID-19 in China. The decision by OPEC (Organization of the Petroleum Exporting Countries) and Non-OPEC members to increase oil production. In the absence of supply constraints, crude oil prices might have decreased further.
“The average international product prices of petrol, diesel, Illuminating Paraffin and LPG have decreased during the period under review. LPG prices have increased due higher freight rate during the period under review,” the department said.
According to DA Shadown Minister of Mineral Resources, Kevin Mileham, the Fuel Price should be decreasing by over R6.00!
Mileham says the ANC should end its “exorbitant levies and taxes on fuel” which keep the prices artificially high.
He said the ANC intending to lower the fuel price by just over R1.00 and celebrating this is “laughable”.
“The devastation of our outrageously high fuel prices will not be alleviated by small decreases at the whim of the global oil price month-by-month, but only by substantive, calculated and fundamental changes to how government controls the fuel price,” Mileham said on Saturday.
The temporary reduction in government’s fuel levy will fall away this month.