The price of petrol will fall by 12 cents a liter while the price of diesel will rise by at least 98c/l on Wednesday.
Mineral Resources and Energy Minister Gwede Mantashe announced on Tuesday known to adjust fuel prices based on local and international factors.
“SA’s fuel prices are adjusted monthly based on international and local factors. International factors include the fact that SA imports both crude oil and finished products at a price set internationally, including import costs such as shipping costs,” his department said.
The main reasons for the fuel price adjustments include crude oil prices, International petroleum product prices, the Rand/US dollar exchange rate and the short-term relief effort.
“The average Brent crude price fell from $109.37 to $104.78 during the period. The most important factors are the Covid-19 restrictions in China, which is a large importer of crude oil, which has led to lower demand for crude oil. In addition, the US announced the release of strategic crude stockpiles to curb the rise in crude oil prices,” the department said is still high. The main factor behind high crude oil prices is concern caused by the ongoing conflict between Russia and Ukraine, as Russia is one of the world’s largest oil exporters.”
While average international product prices for gasoline , diesel fell and Fluorescent Paraffin increased during the period.
“This is because there is still a shortage of diesel supplies due to lower exports from Russia as a major distillate fuel exporter, low global inventories and higher demand by spirits.”
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