The petrol price, for both 93 and 95 grades, will be cheaper by 13c a litre from today. Diesel prices will be cut by 16c (0,05 percent sulphur) and 14c (0,005 percent sulphur) respectively. Illuminating paraffin prices will be 23c a litre lower.
The cuts, announced by Minister of Mineral Resources and Energy Gwede Mantashe, are largely thanks to a stronger rand during the past month.
South Africa imports more than 60 percent of its oil, which is priced in dollar. A stronger rand means the imported prices in dollar gets cheaper.
The average rand/dollar exchange rate for the period September 27 to October 31 was 14,9293 compared to 14,8432 during the previous period, the Central Energy Fund said in a statement. Yesterday morning, the rand was trading at R14,73/$. From Wednesday, 95 unleaded petrol will sell for R16,08 a litre in Gauteng, and R15,44 in coastal areas. Petrol prices have risen by more than R2 a litre since the start of the year. Diesel will sell for R14,68 in Gauteng and R14,14 on the coast from today.
The fuel prices are comparable to those prevailing in the region. A recent report by MHMK Capital revealed that prices for petrol and diesel — in United States dollar terms — are largely comparable across the region. According to the report, as at October 25, 2019, Zimbabwe’s diesel was priced at US$1,09 per litre, while petrol was pegged at US$1,05 per litre while in Mozambique, diesel is retailing at US$1,03 a litre, and petrol at US$1,07 a litre.