South Africa: Fuel prices to fall substantially on Wednesday as lockdown continues

International oil prices have been ravaged by the effects of the coronavirus on economic activity

South Africa: Fuel prices to fall substantially on Wednesday as lockdown continues

Africanian

The price of both 93 and 95 octane petrol will drop by R1.74/l on Wednesday, the central energy fund said late on Friday.

“The average international product prices for petrol, diesel and illuminating paraffin decreased during the period under review,” the fund said in a statement, adding that the rand also firmed against the dollar.

Diesel with a 0.05% sulphur content will go down by R1.61/l and the higher grade by R1.56/l.

International oil prices have been ravaged by the effects of the coronavirus on economies, with Brent crude down more than 62% since the start of the year. Most major producers have agreed to cut production but it may be too little too late as global storage space is fast running out.

With many countries in lockdown, fuel demand is extremely low, adding to the pressure on prices.

The wholesale price of illuminating paraffin will drop bu R2.23/l, with the retail equivalent to come down by R2.97/l.

Liquid petroleum gas is going down by R2.62/kg.

In Gauteng, the price of 95 octane fuel will be R12.22/l, the lowest since September 2016.