CAPE TOWN – The per litre price of all grades of petrol will be 30c cheaper from this Wednesday, announced the Department of Energy on Monday. The latest decrease comes on the back of a sterling rand performance against the dollar.
The price of both grades of diesel will decline by 17c a litre, illuminating paraffin (wholesale) and illuminating paraffin (Single Maximum National Retail price) 19c and 26c respectively and the maximum retail price of LPGas will decrease by 23c a kilogram.
The rand was still trading at its lowest levels since mid-2015 on Monday and by 08:57 the local unit was trading at R12.08 to the greenback. The election of Cyril Ramaphosa as the leader of the ruling ANC fuelled the rand’s rally to under R12/$ for the bigger part of January.
A statement released by the energy department said the rand appreciated more than 100c against the US dollar in the period under review, compared to the previous period, that led to a lower contribution to the basic fuel prices on petrol, diesel and illuminating paraffin by 52,85c, 54.66c and 54.88c a litre respectively.
December 2017 saw the petrol price reach an all-time record high of R14.76 a litre.
“The downgrade and subsequent fuel price peaks reversed a declining fuel price trend and caused sustained high fuel prices in a low growth environment,” said the Automobile Association.