Fuel prices edge lower as oil prices simmer down

It’s a sigh of relief for motorists as fuel prices inclusive of petrol, diesel and paraffin will lower down – a month after tremendous petrol hike in July.

As from Wednesday morning, petrol price will decrease by R1.32 and diesel will while diesel prices will be lowered by 88 cents a litre (0.05% sulphur) and 91 cents (0.005% sulphur).

The announcement was made by department of mineral resources and energy minister Gwede Mantashe on Saturday, July 30.

Past few months, motorisists and commuters had to endure the plight of the fuel hike as they had to dig in deep in their pockets.

According to the department, the country’s fuel prices are adjusted monthly based on international and local factors.

The International factors include the fact that South Africa imports crude oil and finished products at a price set at the international level plus importation costs.

Furthermore, the drop is due to the average Brent Crude oil price decreasing from $115.77 per barrel to $105 during the review period , decreased demand in crude oil because of recession, Covid-19 resurging in China and OPEC and non-OPEC members deciding to increase oil production.

The past petrol hikes led to a threat of protest action in certain parts of South Africa as citizens claimed that, they can no longer afford to commute daily to work anymore as taxi fares also significantly went up.

Additionally, petrol being expensive was competing with high food and electricity prices in making the lives of South Africans difficult.

After the announcement of the last petrol hike in May, there was a looming National Shutdown endorsed by the Economic Freedom Fighters (EFF), as they warned to put a halt in all economic activities until a change was made.

The litre of Petrol was a whooping R23. 84 in early July. .

Disgruntled citizens were angered as they knew that the price was not going to rigidly remain at that amount and that there is a huge possibility for another increase as the year progresses.

The current drop may have come at perfect time. Petrol consumers may now be happy to spare a few cents.

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