Government Expects “Sizeable” Fuel Price Reduction In August

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Petrol is expensive, the most expensive it has ever been. However, data suggests that South Africans will pay less for fuel on the first Wednesday of August 2022.

 


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The Department of Mineral Resources and Energy (DMRE) has said despite a crucial reduction enjoyed by consumers for several months coming to an end in August, there will be a decrease in the price of fuel.

A temporary reduction in the general fuel levy of R1.50 per litre was introduced from April 2022 to July 2022. This was then reduced to 75c per litre from July 2022 to August 2022. This reduction was introduced to protect consumers from the rapidly increasing fuel prices.

The department explained, “Despite this reprieve coming to an end on 02 August 2022, the Department can confirm that there will still be a sizable reduction in fuel prices including paraffin for South Africans”.

They added that a formal announcement regarding the fuel price adjustments will be made by the end of the week. One aspect that will influence the announcement made by the department is the lower price of Brent Crude oil per barrel.

On 25 July 2022, the price of Brent Crude oil was hovering around 105 US dollars per barrel. This is a reduction on average of about 10% compared to the average price for June 2022.

The DMRE adds that consultations on the potential introduction of the price cap for 93 octane petrol have been formally invited. This cost cap could save consumers who use 93 petrol valuable pennies at the pumps.

“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” explained the department.

Currently, individuals living in inland provinces are paying R 26.74c per litre of 95 octane petrol while their coastal counterparts are paying R 26.09.  In inland provinces 50ppm Diesel costs R 25.53c per litre and R 25.53 per litre in coastal provinces.

 

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