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Petrol will now cost less than R10 in coastal areas

Jan 30 2015 15:10

Cape Town - The retail prices of both grades of petrol will drop by 93c a litre next Wednesday, the department of energy announced on Friday.

The most significant drop in fuel prices, however, is the massive R1.50/kg decrease in the maximum retail price for LPGas.

Factors contributing to the fuel price changes include the continual drop in the crude oil prices. On Friday Brent for March eased 16c to $48.97, reports AFP.

The latest drop follows a record decrease of 123c and 127c respectively for 95 and 93 grades of petrol in January.

This means that Coastal petrol users will pay R9.85 per litre for 93 petrol and R9.90 per litre for 95 petrol, while Reef users will pay R10.09 per litre for 93 petrol and R10.31 per litre for 95 petrol.

The department said economic factors influencing the petrol price move are:
• the average international product prices of petrol, diesel and illuminating paraffin decreased during the period under review; and
• the average rand/US dollar exchange rate weakened when compared to the previous period from R11.4749/$ to R11.5777/$ in the period under review.

The weakening exchange rate increased the contribution to the basic fuels price on petrol, diesel and illuminating paraffin by 4.08 c/l, 4.409 c/l and 4.50 c/l respectively, the department said.

The fuel price changes to be effected on February 4 are as follows:

• Petrol (both grades): 93c/l decrease
• Diesel (0.05% and 0.005% sulphur): 102c/l decrease
• IP wholesale: 102c/l decrease
• SMNRP for IP: 136c/l decrease
• Maximum LPGas retail price: 150c/kg decrease



Petrol price decrease won't trickle down to consumer - expert:

Merkurius Capital Solutions' Daryl Ducasse spoke to News24 Live about the predicted petrol price drop. In the videos, he speaks about the unlikelihood of a decreased petrol price trickling down to the consumer.

READ: Beware of inflation, greed, politics

South Africa has an opportunity to become self-reliant and to grow "if only it would change its’ grossly racist, greedy, morally and politically corrupt ways, and start focusing on our future as a nation", Ducasse said.

"Irrelevant of what the fuel price is, it’s all relative to net disposable income (and growth in that income), relative to inflation," explains Ducasse.

"We are having a discussion about the price of a product only because it affects us financially in so many ways. The real issue is how you will react or let it affect you in the future."

Watch:



Watch:





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