petrol price drop

Relief! 99c Petrol Price Drop on Wednesday

Fuel Prices to Fall

The Central Energy Fund (CEF) said on Friday that the petrol price will drop by 99c a litre, while diesel will fall by 74c/l on Wednesday. The cost of a litre of unleaded petrol will now be R12.35 inland and R11.87 on the coast.

 

‘The petrol price will drop by 99c a litre, while diesel will fall by 74c/l on Wednesday’

 

Wholesale illuminating paraffin will cost 66c/l less, said the Department of Energy (DoE), while the wholesale price of lamp paraffin will also decrease by 88c/l.

Furthermore, the maximum retail price of LPGAS will drop by R1.60/kg. A decrease in international petrol, diesel and illuminating paraffin prices are behind the price drop.

 

‘The fall in fuel prices is also a consequence of the rand strengthening against the US dollar’

 

Strengthening Rand

The fall in fuel prices is also a consequence of the rand strengthening against the US dollar and the weaker oil price. TreasuryOne said the rand is trading at its best levels for the year so far.

“Impressive though the rand’s performance has been of late, it has contributed only about 25 cents of the expected fuel price drop in August. The balance has been due to the continued retreat of international petroleum prices in the wake of the UK’s Brexit vote,” explained the AA.

 

‘The petroleum industry strike persists, raising concerns that the pumps will run dry’

 

Ceppwawu Strikes

Meanwhile, the petroleum industry strike persists, raising concerns that the pumps will run dry.

Workers linked to the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) went on strike after failed wage talks. The workers had demanded a 9% increase, but were only offered 7%.

Fuel depots will be affected by the strike, but not filling stations. The South African Petroleum Industries Association (Sapia) confirmed that fuel was in supply and said it had a contingency plan in place. Motorists should not change their standard refuelling patterns to ensure the security of supply, Sapia advised.