The average Brent crude oil price declined from $71.04 to $66.40 over the month.(Coffeekai/ Getty Images)
Diesel and petrol prices will be lowered on Wednesday thanks
to oil price weakness.
Petrol (93 and 95 unleaded) will be cut by 22c a litre,
while diesel wholesale prices will be lowered by 41c to 42c a litre, depending
on the sulphur content.
The wholesale prices of illuminating paraffin will fall by
31c, while the maximum LPGas retail price will increase by 46c/kg.
The average Brent crude oil price declined from $71.04 to $66.40
over the month.
“(This was due to) the tariff and trade war initiated by the
US which has raised global economic recession concerns and a possible lower
demand for crude oil,” the DMRE said in a statement.
Oil prices are under pressure as the risk of global
recessions will weigh on fuel demand, while a shock OPEC+ decision to raise
production has triggered sharp falls.
READ | In a stunning move, Saudi Arabia and Russia are now pushing
oil prices lower
The oil price weakness helped to neutralise an initial blowout
in the rand-dollar rate, which almost reached R19.90 earlier this month amid
shock over new US tariffs and fears that the DA will leave the
business-friendly government of national unity.
But the rand has since recouped its losses, and is currently
trading at R18.41/$, from R18.87 a month ago.
From Wednesday, the price of 95 unleaded petrol will be R21.40
a litre in Gauteng – compared to R25.49 a year before.
The Gauteng wholesale price will be lowered to R18.90 a
litre, from R20.96 a year ago.
