SOUTH AFRICA - MOTORISTS MAY NOW BREATHE A SIGH OF RELIEF AS FUEL PRICES SET TO DROP FROM TOMORROW

The petrol price, for both 93 and 95 grades, will be cheaper by 13c a litre from Wednesday this week.

Diesel prices will be cut by 16c (0.05% sulphur) and 14c (0.005% sulphur) respectively. Illuminating paraffin prices will be 23c a litre lower.

The cuts, announced by Minister of Mineral Resources and Energy Gwede Mantashe, are largely  thanks to a stronger rand during the past month. South Africa imports more than 60% of its oil, which is priced in dollar. A stronger rand means the imported prices in dollar gets cheaper.

The average rand/dollar exchange rate for the period 27 September to 31 October was 14.9293 compared to 14.8432 during the previous period, the Central Energy Fund said in a statement.

On Tuesday morning, the rand was trading at R14.73/$.

From Wednesday, 95 unleaded petrol will sell for R16.08 a litre in Gauteng, and R15.44 in coastal areas. Petrol prices have risen by more than R2 a litre since the start of the year. Diesel will sell for R14.68 in Gauteng and R14.14 on the coast from Wednesday.

via - NEW24