The rand’s excellent performance against the dollar is to thank for a decrease in the price of petrol from Wednesday. The Department of Energy has announced a notable drop in petrol by 36 cents a litre, and diesel will decline by between 44 cents and 47 cents per litre.
Illuminating paraffin will also decrease between 23 cents and 30 cents while liquefied petroleum gas drops by 69 cents.
The department said the drop in fuel prices is because of the rand’s strong performance, “This led to a lower contribution to the basic fuel price on petrol, diesel and illuminating paraffin by 19.33c/l, 19.68c/l and 20.53 c/l respectively. The main contributing factor was the abundance of crude in the market, particularly with growing exports from the US Gulf coast, which kept the price low in the market. Furthermore the forthcoming widespread refinery maintenance in the Middle East and Asia-Pacific is also muting demand for crude and limiting upward price movement.”
Picture: Pixabay
