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Relief as fuel price set to drop

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Good news for SA’s drivers - the price of petrol is set to decrease by between 23 and 32 cents per litre.

This after the price of petrol increased by 1 cent in September.

The Department of Mineral Resources and Energy (DMRE) said the price per litre of 93 (ULP and LRP) will come down by 23 cents while a litre of 95 (ULP and LRP) will now cost 32 cents less in Gauteng. This means that a litre of 95 (ULP and LRP), which currently costs R15.18 a litre, will be priced at R14.86.

Meanwhile, both grades of diesel (0.05% Sulphur and 0.005% Sulphur) will decrease by 90 and 93 cents a litre, respectively.

The price of illuminating paraffin (wholesale) will also go down by 76 cents.

The price of illuminating paraffin (SMNRP) will decrease by 101 cents, while the Maximum Retail Price for LPGAS will increase by 20 cents per kilogram.

In a statement last week, the Automobile Association (AA) predicted that the price of fuel would come down by between 24 and 33 cents.

"The Rand's daily average dipped as low as R16.10 to the US dollar on September 18, following a long downward trend which began in the first week of August. However, a steep jump to around R16.90 followed by a brief plateau and a further spike to nearly R17.20 caught watchers unaware, and there is rightly some concern about the Rand's short- to the medium-term trajectory.

"Almost in lockstep with the Rand, diesel and petrol prices spiked, and then pulled back before starting a further climb. If this trend of a weakening Rand and rising international fuel prices continues, it could be extremely negative for South African fuel users, and we will watch further changes with interest.” said the AA.

It noted that the trends since early August have been stronger for the Rand and cheaper for oil.

"It is too early to tell whether the spikes in both were a blip or the start of a more sustained reversal, but motorists should continue to be wary given the ongoing instability in both local and global economies,” admitted the AA.

This drop in price will be valid as of Wednesday the 7th of October onwards.

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