Coming down: Prices of petrol and diesel. Picture: Itumeleng English
There will be some relief for motorists at the pumps today when fuel prices are set to drop.
According to a statement released by the Department of Mineral Resources and Energy (DMRE), the price of both grades of petrol will drop by R1.24 per litre while the cost of diesel falls by between R1.08 (50ppm) and R1.18 (500ppm).
What this means at the pumps is that 95 Unleaded will now cost you R23.46 at the coast and R24.25 in the inland regions where 93 Unleaded petrol will retail for R23.91, reports IOL.
A 30 litre tank of petrol, assuming you drive a smaller car, will now be R37.20 cheaper than it was last month, while a 50 litre refuel in a medium vehicle will save you R62.
The wholesale price of 50ppm diesel will now be set at R20.40 at the coast and R21.16 inland, keeping in mind that the unregulated retail prices will be more than R2 higher.
But the savings are substantial with a 70 litre refuel in a bakkie or larger SUV costing R75.60 less than in May.
The fuel price cuts come largely as a result of lower international oil prices during May, which led to an over-recovery of 76 cents for petrol. The stronger rand made a smaller contribution of 30 cents to the more positive fuel price equation, while a reduced Slate Levy contributed a further 18 cents, the latter leading to bigger-than-expected decreases across the board.
The Automobile Association welcomed the latest price decreases but urged the government to review the fuel pricing mechanism to determine if there are any factors that can be permanently revised to mitigate against further fuel price shocks in the future.
jason.woosey@iol.co.za