Petrol price to drop significantly as SA enters level 4 lockdown
As South Africa enters level 4 lockdown restrictions, the Minister of Mineral Resources and Energy, Gwede Mantashe announced the adjustment of fuel prices based on current local and international factors with effect from the 6th of May.
The petrol price is set to drop significantly, mainly due to changes in the Rand/US Dollar exchange rate and the decrease in the price of crude oil.
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According to Treasury, "The average Brent Crude oil price decreased from 35.25 USD to 20.00 USD per barrel during the period under review. The main reason for the lower oil prices is due to the continuous spread of the COVID-19 and the resultant lockdown of the major economies globally. This is despite the fact that OPEC and Russia agreed to reduce oil production by about 10 million barrels per day during their April meeting."
As of midnight on Tuesday, fuel prices will be adjusted as follows:
* Petrol (both 93 ULP and LRP): one hundred and seventy four cents per litre (174.00 c/l) decrease Petrol (both 95 ULP and LRP): one hundred and seventy four cents per litre (174.00 c/l) decrease;
* Diesel (0.05% sulphur): one hundred and sixty one cents per litre (161.00 c/l) decrease;
* Diesel (0.005% sulphur): one hundred and fifty six cents per litre (156.00 c/l) decrease;
* Illuminating Paraffin (wholesale): two hundred and twenty three cents per litre (223.00 c/l) decrease;
* SMNRP for IP: two hundred and ninety seven cents per litre (297.00 c/l) decrease;
* Maximum LPGas Retail Price: two hundred and sixty two cents per kilogram (262.00 c/kg) decrease.