Official petrol price reductions for Wednesday

The Department of Energy (DMRE) has published the official fuel price adjustments for September which will be coming into effect this Wednesday, the 7th, reports BusinessTech.

The data shows petrol drivers are in for the biggest relief, with the price of this fuel type being cut by R2.04 across the board later in the week.

Diesel drivers can expect a smaller, but still significant drop of 46 cents and 56 cents per litre for Diesel 50ppm and 500ppm, respectively.

The official price adjustments for September 2022 as provided by the DMRE are as follows:

• Petrol 93 – Decrease of R2.04 per litre
• Petrol 95 – Decrease of R2.04 per litre
• Diesel 0.05% – Decrease of 56 cents per litre
• Diesel 0.005% – Decrease of 46 cents per litre
• Illuminating paraffin – Decrease of 82 cents per litre

These changes would have been even more substantial had it not been for the adjustment of the Slate Levy which added 30 cents per litre back onto the price of each fuel type in the country for September.

What affects local fuel prices

For September, the bulk of the drop in local fuel prices can be attributed to decreasing international oil product prices.

On 29 July Brent Crude was trading at roughly $100 per barrel while on 2 September, it sat closer to the $93 per barrel mark.

Similarly, a favourable Rand/US dollar exchange rate during the month of August also contributed to the drop in fuel prices, although to a lesser degree.

The average exchange rate between these currencies for the most recent period under review was R16.70, compared to R16.87 during the previous period.

This led to a lower contribution to the Basic Fuel Prices on petrol by 12.97 c/l, diesel by 15.63 c/l, and illuminating paraffin by 15.90 c/l.

With these factors accounted for, the prices at the pump in September 2022 will reflect as follows: