Get ready for a reduced petrol price in August

Estimated reading time: 2 minutes

Motorists are in for some relief this month, as the Department of Minerals and Energy (DMRE) has announced a decrease in all grades of fuel starting from Wednesday, 3 August 2022.

The price adjustments are as follows:

  • Both grades of petrol will decrease by R1.32.
  • Diesel 0.05% Sulphur will cost 88c less, while the price of diesel 0.005% Sulphur will decrease by 91c.
  • Wholesale illuminating paraffin will cost R1.44 less with the retail price going down by at least R1.92.

According to the Department, “the main contributing factors are less demand for crude oil due to recession concerns and a resurgence of COVID-19 in China. The decision by OPEC (Organization of the Petroleum Exporting Countries) and Non-OPEC members to increase oil production.  In the absence of supply constraints, crude oil prices might have decreased further,” stated the department.

Moreover, the entity highlighted that the average international product prices of petrol, diesel, Illuminating Paraffin and LPG have decreased during the period under review.

However, the temporary reduction in the government’s fuel levy will fall away in August.

The temporary reduction in the general fuel levy of R1.50 per litre was initially introduced from 6 April to 5 July 2022. This was then reduced to 75c per litre from 6 July 2022 to 2 August 2022.

What are your thoughts on the above-mentioned? Share your views in the comment section below.

Leave a Reply

Your email address will not be published.