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Monday Jun 04, 2012

Petrol price to drop 51c/l

Motorists are breathing huge sighs of relief following the news that the petrol price is set to drop by 51c a litre on Wednesday.

This was confirmed yesterday by the Energy department, which said the reduction would apply across all petrol grades.

Petrol will now cost R11.68/ l in Gauteng and R11.33/ l at the coast.

The price of diesel will drop by 24c/ l for 0.05 and 0.005 percent sulphur. A litre of diesel will cost R10.73 in Gauteng and R10.48 at the coast.

The wholesale price of illuminating paraffin drops by 21c/ l, with a 28c/ l drop in the single maximum national retail price. A litre of paraffin will cost R8.04 in Gauteng and R7.62 at the coast.

The maximum retail price of liquefied petroleum gas (LP gas) will drop by 99c per kilogram, to a cost of R22.07 per kilogram in Gauteng and R20.25 at the coast.

The reduction in the cost of fuel is because of the drop in the average international prices of petrol, diesel and illuminating paraffin.

During the fuel review period, from April 25 to May 31, the average international crude oil prices decreased by $12 a barrel.

The reduction in the crude oil price was attributed to Iran allowing UN inspections of its nuclear programme, which saw the market gain some confidence.

The average rand/ US dollar exchange rate for the period April 25 to May 31 was R8.10 compared to the R7.85 in the previous period.

Automobile Association spokesman Gary Ronald said fuel prices were expected to remain stable over the next two months.

"But the market is extremely volatile and could change, especially with the weakening rand. Fuel prices are dropping and hopefully we will see some reductions, but we won't be able to maximise those benefits unless the rand improves," he said.

Cape Argus

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