The Department of Energy has announced that petrol price will further decrease by 18 cents per liter next month.
BuzzSouthAfrica gathered that the fuel price for all grade of petrol will decrease by 18 cents per liter.
Also, the price for o.5 percent sulphur diesel will decrease by 48 cents per liter whereas diesel 0.005 percent Sulphur will decrease by 49 cents per liter.
More-so, the Energy department related that the wholesale price for Illuminating Paraffin will decrease by 47 cents per liter. The Single Maximum National Retail Price (SMNRP) however, will decrease by 63 cents per liter.
The Maximum Retail Price for Liquefied petroleum gas will as well decrease by 9 cents per kilogram.
According to the Energy department, the nation’s petrol price are adjusted on a monthly basis. The adjustment it said, are informed by international and local factors.
The department buttressed that the international factors are structured on the fact that South Africa import both crude oil and finished products.
As such, the imports are based on the prices set at the international market. Aside that, shipping costs equally influence the petrol price.
From the foregoing, it’s quite obvious that the main reason for the petrol price decrease is the strengthening of the Rand against the US Dollar.
The Department of Energy confirmed this relating that the strength rand gained cushioned the fuel prices by about 22 cents per liter.
Nonetheless, the department added that the prices will be different in other fuel pricing zones due to the adjustment to the transportation costs.
Thus, it will soon publish the pricing schedule for the different zones.
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Meanwhile, reports have it that the department will soon begin talks with the petroleum industry on deregulating liquid fuels.
Tseliso Maqubela, the deputy director-general of petroleum and petroleum product regulation in the department confirmed this.
Maqubela said the deregulation can create avenues which will hand market the opportunity to to set prices. That, to Maqubela, will encourage investment in upgrading the country’s refinery capacity and as such, enable the availability of cleaner fuels.