South African motorists are set to benefit from significant cuts in fuel prices on Wednesday, with petrol and diesel prices dropping by over R1 per litre.
These adjustments will bring fuel prices back to levels last seen before Russia’s invasion of Ukraine in early 2022.
The price of 95 unleaded petrol will be reduced by R1.14 per litre, while 93 petrol will see a R1.06 decrease.
Diesel prices will also fall, with wholesale prices dropping by between R1.12 and R1.14 per litre, depending on sulphur content.
For illuminating paraffin, the wholesale price will go down by R1.11 per litre, but there will be a slight increase in the retail price of LP gas, which will rise by 23c per kilogram.
From Wednesday, 95 unleaded petrol will cost R21.05 per litre in Gauteng and R20.26 per litre along the coast.
Meanwhile, Gauteng diesel prices will fall to R18.45 per litre, with coastal prices at R17.66 per litre, marking the lowest levels since February 2022.
The surge in fuel prices after Russia’s invasion of Ukraine was due to supply chain disruptions and limited access to Russian crude oil, which pushed global oil prices to new highs.
However, the Department of Mineral and Petroleum Resources confirmed that oil prices have been decreasing, with the average Brent oil price dropping from $78.54 per barrel in August to $72.82 in September.
The reduction in fuel prices is mainly due to increased oil production from major producers, despite global concerns about weaker demand, particularly from the US and China.
The rand’s recent strength against the US dollar has also contributed to the price cuts, with the currency averaging R17.68/$ over the past month compared to R18.05 in August.
This exchange rate improvement shaved about 22c off petrol and diesel prices.
This price reduction comes as a relief for consumers and businesses alike, with the lowered diesel prices offering much-needed relief to industries reliant on transportation.
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