Petrol price to drop

The retail price of all grades of petrol will decrease by 55 cents per litre (c/l) on Wednesday, 6 June 2012‚ the Department of Energy announced on Friday.

This follows a 28c/l rise in the price of petrol in May.

The price of 0.05% sulphur diesel and that of 0.005% sulphur diesel will both go down by 24.8c/l.

During the period under review‚ the average international product prices of petrol‚ diesel‚ and illuminating paraffin decreased.

During the current fuel price review period‚ April 25 to May 31‚ average international crude oil prices decreased by US$12.0‚ compared to previous fuel price review period‚ from $120.0 per barrel to $108.0 per barrel.

This decrease in international crude oil prices mainly culminated from Iran's decision to allow United Nations inspections into the country to inspect its nuclear programme‚ which led to the market gaining some form of confidence in crude oil supply; the euro debt worries; and lower demand for commodities by China as its economy was slowing down.

The average rand/US dollar exchange rate weakened when compared to the previous period‚ the CEF reported.

The average rand/dollar exchange rate for the period April 25 to May 31 was 8.103 compared to 7.853 during the previous period.

The weakening of the rand against the dollar increased the contribution to the basic fuels price on petrol‚ diesel and illuminating paraffin by 20.21c/l‚ 21.03c/l‚ and 20.84c/l respectively.

Petrol 95 ULP octane in Gauteng will now cost R11.67 a litre‚ while at the coast it will cost R11.32 per litre.

The single maximum national retail price for illuminating paraffin will decrease by 28 cents per litre to R8.04 per litre.

The maximum retail price for liquid petroleum gas will decrease by 99 cents per kilogram.