Cape Town - The price of 95 unleaded petrol will come down by R1.02 a litre from Wednesday.
The price of 93 ULP meanwhile comes down by 89c, Mineral Resources and Energy Minister Gwede Mantashe announced on Monday.
Diesel will increase by between 10c and 15c per litre.
South Africa’s fuel prices are informed by international and local factors including that South Africa imports both crude oil and finished products at a price set at the international level, Mantashe said.
The average Brent Crude oil price decreased from 94.00 US Dollars (USD) per barrel to 89.79 USD per barrel during the period under review.
The main contributing factors are low demand from China, although they’re now slowly reopening their economy, the release of crude oil stocks by the International Energy Agency (IEA) member countries and the US which assisted in supplementing tight supply and keeping the prices lower and Saudi Arabia cutting oil prices to compete with cheaper oil sold by Russia
“Oil prices are dropping amid fears of global recession that could affect the demand for finished products.”
The rand was at the weakest level against the USD since May 2020, the department said.
“The situation worsened due to the recent announcement by the US Federal Reserve to increase the interest rates by 75 basis points amid continued recession fears.”
Cape Times