Fuel prices go down at midnight
'The reductions offer much-needed relief during a challenging economic period,' says Lebo Ramolahloane, National Vice Chairperson of SAPRA (the South African Petroleum Retailers Association).
Although the prices of petrol, diesel and paraffin will decrease, that of gas is increasing.
Here are the adjustments that will be effective from midnight:
Petrol:
93 ULP & LRP: decrease 22.00 c/litre
95 ULP & LRP: decrease 22.00 c/litre
Diesel:
0.05% Sulphur: decrease 42.00 c/litre
0.005% Sulphur: decrease 41.00 c/litre
Illuminating paraffin:
Wholesale: decrease 31.00 c/litre
SMNRP: decrease 41.00 c/litre
LPG (Liquefied Petroleum Gas):
Maximum Retail Price: increase 46.00 c/kg
'The decrease in petrol, diesel, and illuminating paraffin prices provides immediate relief to South African motorists and businesses. In a fragile economy such as ours, this is a welcomed development that could ease inflationary pressures and provide a short-term boost in consumer spending power,' said Ramolahloane.
With petrol down by 22 cents and diesel by up to 42 cents, the impact is tangible. LPG gas will be the only one to show a 46 cents per kilogram increase. 'For example, a motorist filling a 50-litre tank of 95 unleaded petrol will now save approximately R11 per fill. Diesel users, particularly in logistics and agriculture, stand to benefit from reductions of over R20 per tank,' he says.
Ramolahloane says these lower input costs can support food security and job retention in fuel-intensive sectors such as agriculture, logistics, and public transport. 'For petroleum retailers, the increased volumes at service stations from consumers responding to lower pump prices are likely to provide a boost in revenue, particularly as retail margins remain stable.'
The global oil market is being influenced by geopolitical factors, notably the recent escalation in trade tensions between the United States and China. The re-imposition of tariffs by the U.S. has disrupted oil demand, especially from China – a major Brent crude importer – leading to excess supply and driving down prices.
'While we welcome the current decline in prices, we must remain cautiously optimistic. Global market volatility and local political uncertainty under the newly formed Government of National Unity require close monitoring,' Ramolahloane concludes.
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