The Automobile Association (AA) announced on Monday, August 30, that the price of all grades of fuel is set to drop by Wednesday, September 1. However, the latest statement released on Tuesday, August 31 by the Minister of Mineral Resources and Energy, Gwede Mantashe contradicts the AA’s announcement. The price of both 93 and 95 unleaded and lead replacement petrol is expected to increase by 4 cents per litre, as the statement outlines.
According to Mantashe, South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including the importation costs.
The start of a new month comes with some good news for South African motorists after the Automobile Association announced that the prices of all grades of fuel are set to drop by Wednesday, September 1.https://t.co/cMUYChkmbZ
— Cape {town} Etc (@CapeTownEtc) August 31, 2021
The statement said that diesel prices will also drop by 15.22 cents per litre for 0.05% sulphur and 14.22 cents per litre for 0.005% sulphur. Paraffin is also expected to drop by 15 cents per litre.
News 24 further reported that petrol and diesel prices are largely determined by the oil price, as well as rand strength, and the rand weakened a fair amount against the US dollar in August, meaning that motorists will not enjoy the whole benefit of the lower oil price.
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