Fuel price decrease brings a bit of relief to struggling SA motorists

On Wednesday, both grades of petrol decreased by R1.32 a litre, diesel went down by between R0.88 and R0.91 a litre while paraffin will cost R1.44 less.

Picture: 123rf.com

JOHANNESBURG - Driving to work as of Wednesday will cost you less following the substantial decrease in fuel prices at midnight, with both grades of petrol decreasing by R1.32 a litre.

Diesel went down by between R0.88 and R0.91, a litre while paraffin will cost R1.44 less.

The Energy Department's Robert Maake said this was due to a lower oil price: “The reason for this adjustment… is the oil prices decreased during the period under review from $115 to $105 a barrel.”

But he said the decreases could have been bigger: “However, the weaker rand took away around R1 from the currency of price adjustments and also terminated the short-term relief measure of R0.75c of the fuel levy, which has come to an end.”

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The reduction of the fuel levy was implemented in April this year in an attempt to give consumers a reprieve from the increasing cost of oil prices. The Energy Department announced the temporary reduction in the fuel levy would drop from R1.50 per litre to R0.75 in July.

The department also announced that it had started the formal process of deregulating the price of petrol in South Africa.

Late last month, Minister Gwede Mantashe published a government gazette, asking the public to comment on his intention to introduce a price cap for 93 octane.

This will allow fuel retailers to set their own fuel prices, including petrol discounts.

Currently, the exact price of petrol is set by the government.

South Africans have 30 days to comment on the proposal before the process can be implemented.