The Central Energy Fund (CEF) has confirmed that the price of petrol will decrease by R2,4c per litre on the first Wednesday of September. This reduction applies to both grades of petrol.
Motorists who use diesel will also enjoy a reduction in cost as the price of Diesel 0.05% sulphur will drop by 56c while the price of diesel 0.005% sulphur will decrease by 46c.
Here’s a full list of price adjustments that will take effect from 7 September 2022
- Petrol (both grades) will decrease by R2,04c per litre.
- 0.05% sulphur diesel will decrease by 56c per litre.
- Diesel (0.005%) sulphur decreases by 46c per litre.
- Illuminating paraffin (wholesale) will decrease by 82c per litre.
- Illuminating paraffin (retail) will decrease by R1,09c per litre.
- Maximum retail price for gas will decrease by R1,65c per kilogram.
The price of fuel is determined by several factors including the price of a barrel of crude oil, the currency to US dollar exchange rate and several levies.
The CEF explained that the average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review. These factors were favourable to South African consumers and led to a reduction in the price of fuel.
One factor that some energy experts believed could derail the sizable September fuel price cut was the Rand to US dollar exchange rate.
Over the past few weeks, the Rand depreciated against the US Dollar led to speculation that fuel cost reductions would be less than previously predicted.
However, this was not the case as the CEF revealed that during the period of review, the rand appreciated slightly against the dollar
“The average Rand/US Dollar exchange rate for the period 29 July to 01 September 2022 was 16.7016 compared to 16.8719 during the previous period,” explained the CEF.
A depreciating Rand to US Dollar exchange rate could still have a negative impact on the fuel price in future months.
