The Department of Mineral Resources and Energy (DMRE) has confirmed a reduction in petrol prices for August, saying a formal announcement of the sizeable reduction will be made by the end of the week.
According to Business Tech, the price of Brent Crude oil was hovering around $105 per barrel by close of business on Monday 25 July, a reduction on average of about 10% compared to the average price for June 2022.
This follows a statement in which the DMRE welcomed the reduction of international petroleum product prices, including crude oil prices, which is expected to offer some alleviation to motorists.
“Government has for the past four months cushioned South Africans from the vagaries of the oil market and the full impact of the high international oil prices. A temporary reduction in the general fuel levy of R1.50 per litre was introduced from 6 April 2022 to 5 July 2022.”
This was reduced to 75c per litre from 6 July to 2 August 2022.
The DMRE reassures South Africa that “despite this reprieve coming to an end on 2 August 2022, the department can confirm that there will be a sizeable reduction in fuel prices including paraffin for South Africans”.
Mineral Recourses Minister Gwede Mantashe says consultation on the introduction of the price cap for 93 Octane fuel has formally been initiated since its undertaking in April this year. This price cap aims to allow for fuel suppliers who can pass the benefit to the consumer to do so.
Mantashe adds that “no disruptions are expected in the fuel market as 93 Octane accounts for a small portion of the market, however this will allow the department to monitor how the market will react to the capping of the price”.
After two massive petrol price hikes in June and July, the news may offer some relief to the struggling wallets of motorists and commuters.
According to the Automobile Association, fuel prices for August could be reduced by R1.07 per litre for 93 octane, 90 cents per litre 95 octane, while diesel could drop by around 91 cents per litre and illuminating paraffin by about 94 cents per litre.
However, the AA warns the reduction in petrol prices is subject to change ahead of the DMRE’s announcement, as reported by The Citizen.
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