The South African government has announced that the price of fuel at the pump will be reduced beginning Wednesday.
South Africa’s minister of mineral resources and energy, Gwede Mantashe, stated this in a statement on Saturday.
He stated that the price adjustment is intended to alleviate the burden of rising energy prices on consumers.
Fuel prices in South Africa are adjusted monthly based on international and local factors.
“International factors include the fact that South Africa imports both crude oil and finished products at international prices, which include importation costs,” Mantashe explained.
According to the minister, the price of 95-octane and 93-octane petrol will be reduced by ZAR 1.32 ($0.08) per litre, to ZAR 25.42 and ZAR 24.99, respectively.
He also stated that the price of diesel, which is primarily used by farmers, haulage vehicles, and emergency power generators, will be reduced by 88 cents for high-sulphur diesel and 91 cents for lower-sulphur diesel.
Mantashe stated that the prices were adjusted due to lower crude oil demand due to recession concerns and the resurgence of COVID-19 in China.
He went on to say that “the decision by OPEC and non-OPEC members to increase oil production” was another factor.
“During the period under review, the average international product prices of petrol, diesel, illuminating paraffin, and LPG have decreased.” “During the period under review, LPG prices increased due to higher freight rates,” he explained.
“Petrol ULP 95 contributed 303.16 c/l to the Basic Fuel Price, ULP 93 contributed 297.42 c/l, diesel 500ppm and 50ppm contributed 267.30 c/l and 271.15 c/l, respectively, while illuminating paraffin contributed 249.77 c/l.”
According to the minister, the price decrease was also prompted by the rand’s depreciation.
The country’s inflation rate reached a 13-year high of 7.4 percent in June.